Landscape company owners are sure to be affected by the upcoming federal overtime rule changes, which could affect the exempt status of employees. The new rule, which goes into effect December 1, 2016, is being challenged by several lawsuits. The National Association of Landscape Professionals has joined a coalition of businesses to challenge the rule.

In response to the lawsuits, US Labor Secretary Thomas Perez released a strong statement in support of the new rule and its implementation.

“We are confident in the legality of all aspects of our final overtime rule. It is the result of a comprehensive, inclusive rule-making process. Despite the sound legal and policy footing on which the rule is constructed, the same interests that have stood in the way of middle-class Americans getting paid when they work extra are continuing their obstructionist tactics. Partisan lawsuits filed today by 21 states and the U.S. Chamber of Commerce seek to prevent the Obama administration from making sure a long day’s work is rewarded with fair pay. The overtime rule is designed to restore the intent of the Fair Labor Standards Act, the crown jewel of worker protections in the United States. The crown jewel has lost its luster over the years: in 1975, 62 percent of full time salaried workers had overtime protections based on their pay; today, just 7 percent have those protections – meaning that too few people are getting the overtime that the Fair Labor Standards Act intended. I look forward to vigorously defending our efforts to give more hardworking people a meaningful chance to get by.”

While many are holding out hope that the rule will be halted or overturned, business owners are still urged to evaluate their current staff hours and status and have a plan in place to comply with the rule. Should DOL move forward with the new rule, audits and costly fines could be a risk for those businesses who do not prepare.

Related posts:
Understanding the DOL overtime rule
What is an "exempt" employee?
Communication is key in DOL overtime compliance

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