Federal Judge Blocks New Overtime Rules

Federal Judge Blocks New Overtime Rules

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Mazzant’s decision places those new policies and expectations in purgatory, according to David L. Thompson, vice president of public policy at the National Council of Nonprofits. “I expect that shock is shared by employers and employees alike,” he said. “I don’t know anybody that expected for this to happen.”

Thompson noted that just because an injunction has been granted does not mean that the new rules are dead. Another hearing is expected in be held in district court on Monday. The conservative-leaning Fifth Circuit Court of Appeals and United States Supreme Court, still limited to eight members, would be in line to handle a potential appeal.

If the injunction is still in effect come Jan. 20, the rule could be dead, according to Thompson, though there will still be a filibuster in the Republican-controlled Congress.

If the rule does go into effect before Jan. 20, “I’d say we have high drama,” Thompson said. “Not taking away rights once granted is a powerful [deterrent].”

A silver-lining in this whole process, according to Thompson is that the Department of Labor has estimated that 8 million workers were misclassified as exempt or non-exempt – meaning that the exercise has been a positive in terms of compliance with existing regulations. State associations have hosted more than 150 education sessions on the rules and, anecdotally, many nonprofit leaders have been finding out for the first time that the sector is not exempt.

Whether or not the new rules move forward, Thompson cautions organizations to continue to analyze rules, particularly the duties’ test, and make sure they are compliant for – among other reasons – the sake of workplace appeal. “We don’t want nonprofits to be the employers of last resort,” Thompson said.

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The NonProfit Times
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