New DOL Overtime Rules And The Fluctuating Workweek

Unless you have been living under a rock for the last few months, you are undoubtedly aware that December 1, 2016 marks the day that the U.S. Department of Labor’s (“DOL”) new overtime rules become effective. The new minimum salary level for the executive, administrative, and professional employee exemptions under the Fair Labor Standards Act (“FLSA”) will be $913 per week, or $47,476 per year, which more than doubles the current minimum salary levels. You will recall from our October 13, 2016 post that 21 states jointly filed a lawsuit in the Eastern District of Texas asking that the Court block the DOL from implementing the rules. Shortly after filing their Complaint, the states filed a Motion for Preliminary Injunction, asking the court to block enforcement of the new rule pending a final ruling. A hearing has been scheduled for November 16, 2016, just two weeks before the new rule is scheduled to take effect. Accordingly (and because the issuance of an injunction is a long-shot), employers must prepare for the new overtime rules to go into effect. One option employers are considering is the implementation of a fluctuating workweek to reduce the financial implications of the new overtime rules.

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