One more thing for which to be Thankful…on November 22, a Texas Federal Judge blocked the Department of Labor Overtime rule the was expected to make more than 4 million private sector workers eligible for extra pay. 21 States, the U.S. Chamber of Commerce along with others, requested the ruling. The injunction preserves the status quo so the new rule will NOT take affect December 1, as the Labor Department had wanted.
Congressional Republicans are working on a legislative fix to the rule. President-elect Trump may withdraw the rule when he takes office on January 20, 2017.
Employers do not have to pay overtime rates when salaried “executives, administrators, and professionals” work more than 40 hours in a week if the salary is more than $455 per week. The new rule would have raised this threshold to $970 per week. Under the proposed rule, an administrator, manager, or professional who earns a salary of $970 per week or less would have to be paid overtime hourly rates for hours worked more than 40 even if they were hired at a salary as opposed to an hourly wage.
For Property Owners and Managers, this rule would have impacted leasing professionals, property managers, maintenance supervisors, executive housekeepers, team leaders, and maintenance managers.
Some property owners considered splitting a full time position into two part-time positions and/or reclassifying certain job duties.
Economists believe the rule would have reduced employment in many sectors, including service industry, retail, and restaurants and food service.
The rule would have especially reduced opportunities for college students and recent college graduates who don’t mind putting in long hours to learn a job and establish themselves in an organization.
Non-profits running on tight budgets who are able to hire dedicated professional staffers at below market wages due to the philanthropic nature of their work would have been especially impacted.
Our gratitude to the organizations, including the National Apartment Association and US Chamber of Commerce, that dedicated many hours and monetary resources towards nullifying this rule.