Following months of preparation for the new Fair Labor Standards Act (FLSA) overtime regulations, the injunction issued on Nov. 22, 2016, halted implementation. This created significant uncertainty, particularly on the threshold of a new presidential administration. Drake made the decision to suspend planned changes until more was known about the outcome of the injunction and response of the new administration.
As of the writing of this communication, there has been no change in the status of the FLSA overtime rules. In the injunction lawsuit appealed to the Fifth Circuit Court of Appeals, the U.S. Department of Justice recently asked for more time so the new administration could consider the issue. The Trump administration also issued a freeze on new or pending federal regulations, with various advocacy groups debating over whether the freeze would apply to the FLSA rules made final and published before the freeze.
However, we are working to ensure we are able to respond once an outcome is known. We are analyzing various scenarios including abandonment of the new rules, modification of the new rules, or full implementation of the rules. While this rule affects how we classify job—as either exempt or non-exempt—the work over the course of the past year has also focused on ensuring positions are properly placed in Drake’s staff compensation structure consistent with the Staff Salary Guidelines. (These can be found on the HR tab of blueView under the “Manager’s /Toolkit”.) This analysis will prove useful regardless of the outcome of the proposed FLSA rule.
Anyone with questions about this process or next steps are encouraged to reach out to Gary Johnson at 271-4804.
—Gary Johnson, Director, Human Resources