GRAND RAPIDS, Mich. -- New minimum compensation amounts have gone into effect this month for salaried employees in certain executive, administrative, and professional positions.
Employment attorney Mark Smith with the Rhodes McKee law firm in Grand Rapids spoke to WOOD Radio about some legal action that was taken to block the new standard. He said employers will have some thinking to do now.
"They've got some quick work to do in connection with adjusting salaries for anyone who earns between the old rate of $35,568 per year and the new rate of $43,888 per year," he said.
That means the employer has to decide whether to implement the new wage mandate or wait to see if litigation puts the brakes on that.
""So, they don't have to try to undo an $8,000 salary increase for people," Smith said.
Three lawsuits were filed in Texas claiming the U.S. Department of Labor exceeded its authority in establishing the salary levels. Two of the lawsuits sought a nationwide injunction to prevent the new levels from going into effect. But those gained no traction. However, an injunction was issued in Texas, where a judge prevented the Department of Labor from enforcing the increases for government employees in that state.
###
Employment attorney Mark Smith with the Rhodes McKee law firm.