Overtime Rule Postponed

Overtime Rule Postponed

Late last month, a Texas judge provided a preliminary injunction to President Obama's new overtime rules that were to go in to effect on December 1st. CliftonLarsonAllen Principle and Farm CPA Today blogger Paul Neiffer says that this ruling just postpones the rules, not overturns them.

Neiffer: "Under those rules unless a farmer was paying a manager or an office staff at least $47,000 they weren't able to treat them from being salary-exempt from paying anything over 40 hours. What the injunction essentially does is postpone the ruling so farmers are allowed to pay under the old law or they can start using the new law — it is really up to the farmer to decide what to do. If they have gone head and given the employee a raise it might be tough to undo that raise. But essentially it just postpones the ruling's affect."

According to Neiffer's blog the injunction allows the judge more time to determine if the rules are allowed or if part of the rules need to be changed. Neiffer continues with some advice for farmers concerning this overtime rule

Neiffer: "I think what will happen with President-elect Trump coming into office likely this regulation is either going to be pulled or changed or the amount is going to be dropped. I think for now most farmers should simply not do anything at all and wait for the judge to make his final ruling or wait for President-elect Trump or Congress to make a change on it anyway."

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