Overtime pay rules remain in flux, after a federal court struck down Obama Administration-era guidelines that would have made millions more Americans eligible for overtime pay.
Twenty-one states had challenged the rule changes, which would have raised the overtime pay threshold to $47,000. That would have made approximately four million more workers eligible to receive overtime pay.
Womble Carlyle Labor & Employment attorney Richard Rainey discussed the latest developments with the Triangle Business Journal. Rainey said that for some employers, the federal court ruling may create a difficult choice.
"Employers who had not yet made any changes to their pay practices in anticipation of the Obama administration rules can continue with business as usual. However, many employers were proactive and raised salaries in advance of the new rules or changed the classification of some employees from exempt to non-exempt because the employees did not meet the salary level test," he said.
"From a legal standpoint they can safely return to their previous classification practices and even reduce the salaries of those employees who had previously gotten a raise. However, there are significant employee morale and management concerns in doing so. Employers will need to carefully weigh the costs and benefits of making changes that may alienate their employees."
Click here to read "Triangle lawyers react to federal judge striking down overtime rule" in the Triangle Business Journal.
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