Michael Schmidt, vice chair of Cozen O'Connor's Labor & Employment department, discusses if employers should continue to prepare for overtime regulations in Employee Benefit Adviser. A nationwide injunction filed Tuesday blocking the Department of Labor’s overtime rule — which was scheduled to go into effect Dec. 1 — leaves employers in limbo as to what to do next. “Employers can’t ignore the ancillary impact,” says Michael. “The more money employers have to pay for payroll, the less they’ll be hiring, the less they’ll be retaining.” The impact of upgrading some employees’ salaries, as per the regulations, could create negative feelings from senior management. The delta between lower-level and higher-level positions will be shortened, and senior employees might feel they deserve a raise as well, Michael says.

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