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Company deals with court decision on DOL overtime rule

Written on Jul 31, 2020

By Jessica Salerno, OSCPA content manager

When a federal district court stopped a Department of Labor overtime rule days before its Dec. 1 implementation date, many employers were left with an unexpected option: should they continue to adhere to the rule or throw out all the planning they had done?

Russell Meyer, CPA, CFO of White Castle Management, Co and OSCPA Executive Board member, said his company opted to move forward as if the rule would be enforced.

Meyer“We made the very conscious decision to move the handful of people that this impacted up from a pay structure standpoint,” Meyer said. “We decided this several months ago as we got closer to the deadline. While we knew a  delay was possible, we believe in investing in our people and for the future.”

Meyer said various internal teams were pulled together months earlier to follow the developing DOL overtime rules, and that figuring out the logistics of the rule was no easy task. Despite the problematic details, he said the focus was on doing “the right thing” for White Castle team members.

With the future of the DOL overtime rule uncertain, Meyer said he is grateful for a pause in the frequent business regulations that come out of Washington.

“Every company is different and positions are different – not only in our industry but across the board,” he said. “One size really doesn’t fit all, which is where the regulations went. Hopefully going forward there will be a little more flexibility to get more common sense regulation and let the circumstances of the businesses drive pay structures.”

Related: Court ruling effectively kills DOL overtime rule