We may be in the middle of winter, but it is never too early to start thinking (dreaming?) of summer. Summer is a time for baseball games, relaxing on the beach and walks along the Canalside. Summer is also a time that many employers start to think about bringing on summer help in the form of unpaid internships. Unpaid internships are often thought of a place where young individuals can get their feet wet in a new industry and an employer can get some free labor. However, unpaid internships have often lead to employers getting into legal hot water when a court determines that an intern should not have been unpaid after all. This may change under new guidance from the United States Department of Labor.
Just before Thanksgiving, a U.S. District Judge agreed with 21 states and a coalition of business groups and blocked the Obama administration’s new overtime rule. The judge determined the rule is unlawful and granted a motion for a preliminary nationwide injunction, suspending the implementation date indefinitely.
In a vote of 246-177 along party lines, the House passed a bill aimed at delaying the Obama Administration’s far reaching overtime regulations. The Regulatory Relief for Small Businesses, Schools and Nonprofits Act would delay for six months the mandatory overtime rule that makes 4.2 million more Americans eligible for overtime pay.
Earlier this year, the Obama Administration announced its final ruling for overtime regulations (See our blog outlining the details of the rule here). The new rule, which would make anyone earning up to $47,476 a year eligible for overtime, goes into effect on December 1, 2016.
The Obama Administration announced its final ruling for overtime regulations on May 18, 2016. With this new ruling, Buffalo Niagara employers must prepare for changes in how they compensate their employees.