Stay the Course... Plan for FLSA Changes to Take Effect December 1, 2016
In a recent Zap Payroll e-alert we mentioned that: "While there have been legal challenges and attempts by Congress to delay implementation, we do not foresee any changes to the rules until 2017, if at all. Employers should therefore be in compliance by December 1."
According to our Content Team, our e-alerts only detail what we know for certain or what is happening. So here is what we know...
There are several ongoing legal, political and legislative challenges to the FLSA update. For reasons detailed below, we still recommend that employers prepare for and follow the impending FLSA changes.
For a bill to become law, the Senate needs to pass a similar version, the two versions are then reconciled and subject to additional legislative scrutiny. There are a lot of ways to derail this process as well. If reconciliation succeeds, the President would need to sign the bill (and not veto it) for it to become law. This will not happen before December 1, the effective date.
The ultimate future of the FLSA is ambiguous with a new Presidential administration and congress, but they will not take office until early 2017.
As you may have also heard, 21 state governments and various employer advocacy groups have challenged the impending rules. While it is an open and ongoing legal case, no orders or injunctions have been issued yet to delay or stop the FLSA changes. Although the Plaintiffs are certainly trying to seek such orders. This could change but there is no way to predict with any certainty if this would happen or not. I predict that the FLSA changes will likely remain intact.
If anything major does change, we would notify HRSC users who are subscribed to e-alerts. If you are not receiving e-alerts from us and would like to, visit us at www.zappayroll.com/hr-support-center