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Update On The DOL Overtime Rule |
As of July 1, 2024 |
What Just Happened?
Judge Sean Jordan has issued a temporary restraining order specifically for the State of Texas as an employer, meaning the first phase of the DOL Overtime Rule will go into effect as announced on Monday, July 1, 2024. This decision temporarily exempts the State of Texas from the rule's implementation. However, businesses in Texas and nationwide will still need to comply. The Restaurant Law Center (RLC) is part of a coalition challenging the rule and the ALHA is leading efforts with Partnership to Protect Workplace Opportunity, and we are analyzing our options now on behalf of our members given the ruling. More updates will follow.
What Restaurants and Hotels Should Do Now?
Review job duties: Ensure employees are correctly classified as exempt or non-exempt based on their job duties. Refer to this DOL fact sheet for guidance on determining exempt status.
Review payroll records:Identify salaried exempt employees with wages below the new threshold. For these employees, you might consider
1) raising their salary above the new limit or 2) changing their status to non-exempt and properly tracking hours to pay overtime when appropriate.
Consult counsel: Consult with an employment attorney licensed in your state to determine how best to comply with the rule and all applicable state and local rules.
Review payroll records:Identify salaried exempt employees with wages below the new threshold. For these employees, you might consider
1) raising their salary above the new limit or 2) changing their status to non-exempt and properly tracking hours to pay overtime when appropriate.
Consult counsel: Consult with an employment attorney licensed in your state to determine how best to comply with the rule and all applicable state and local rules.
