The new Department of Labor overtime rules, set to go into effect December 1, are now on hold.
Late yesterday, a federal judge in Texas issued an injunction blocking the new rules that would extend overtime pay to more than 4 million employees. This means that the salary threshold for exemption from overtime pay remains at $23,660 until the court makes a final ruling.
“A preliminary injunction preserves the status quo while the court determines the department’s authority to make the final rule as well as the final rule’s validity,” said U.S. District Court Judge Amos Mazzant in his ruling.
PLEASE NOTE: Corporate Payroll Services will not take any action with your employees in terms of raising or lowering salaries or converting employees from hourly to salary or vice versa without your specific instructions.
If you have instructed us to make a change in anticipation of the new rule which we have already made and you wish for us to change it back, you must specifically instruct us to do so."
If you have questions, please contact your branch office.
Thursday, November 24, 2016 is a banking holiday, so please plan ahead!
As you pull together your list of to-dos for Thanksgiving—turkey, stuffing, green bean casserole and pumpkin pie—don't forget to include your payroll submission in your plans. We don't want you to panic as you settle in, semi-comatose, to enjoy some after-dinner football and suddenly realize your payroll didn't get submitted on time.
Here's what you need to know:
Corporate Payroll Services will be closed on Thursday, November 24, 2016 and Friday, November 25, 2016 in observance of Thanksgiving.
If you are a direct deposit or CPS Checks customer, please submit your payroll one business day earlier than usual to ensure proper funding of employees’ bank accounts.
Thursday, November 24, 2016:
Banks and Corporate Payroll Services offices will be closed. No payrolls will be processed or delivered on this day.
Beginning December 1, New Overtime Rules Could Affect You
Effective December 1, millions of salaried employees will become eligible for overtime pay under the DOL’s Fair Labor Standards Act (FLSA). If you are unaware of the new rules, you could find yourself paying overtime to employees who, before December 1, were exempt.
Current Overtime Rules
Under current rules, certain categories of salaried executive, administrative, professional and outside sales employees who meet certain job criteria and are paid up to $455 salary per week ($23,660 per year) are exempt from minimum wage and overtime pay requirements. Highly compensated individuals making over $100,000 per year and meet certain other criteria fall under special rules as well.
New Overtime Rules
Beginning December 1, new rules update the salary level at which you must begin to pay overtime to these ‘exempt’ employees to $913 per week or $47,476 annually. The threshold for highly compensated individuals was raised to $134,004.
The new rules also provide for automatic updates every three years beginning January 1, 2020.
In observance of Veterans Day, banks will be closed on Friday, November 11, 2016 and no banking transactions will be processed.
Corporate Payroll Services offices will be open and deliveries will be made as normal.
Please submit payroll at least one business day early to ensure proper funding of direct deposits into employee bank accounts.
In order to fund direct deposit or CPS Checks on:
Thursday, 11-10-2016 - Please submit payroll by Tuesday, 11-08-2016
Monday, 11-14-2016 - Please submit payroll by Wednesday, 11-09-2016
Tuesday, 11-15-2016 - Please submit payroll by Thursday, 11-10-2016
We encourage those who would normally have a Friday, 11-11-2016 check date to submit on Tuesday, 11-08-2016 for a check date of Thursday, 11-10-2016.
Payrolls must be submitted prior to your branch’s cut off time to be processed the same day.
Auto-run payrolls will be processed early to ensure timely funding of employee bank accounts.
If you have any questions, please contact your Payroll Specialist at your branch office.
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