Tax Blog

The New Overtime Rule Starts Tomorrow!

A judge in North Texas blocked the newly minted overtime rules as written under executive order by the current administration. However, various media are reacting to this ruling particular ruling as to proceed with absolute caution if following the court and not the law as written.

It is our position that employer to take a “high road” approach. If you have a salaried employee, they should make a compensation of $47,476 annually. Alternatively, you can switch the salaried employee to hourly. We do not and will not take favorites in politics. Our word of caution is that if it is determined by the next court of appeal or even the Supreme Court of the United States that this ruling is wrong, then employers not following the rule will have to make up the difference retroactively. If this decision goes to the Supreme Court, it could potentially take 2 years. Additionally, Donald Trump has not made his position on the matter official.

Sign Up


Success! Message received.