On November 22, 2016, the U.S. District Court in Texas granted a nationwide preliminary injunction blocking the U.S. Department of Labor’s final overtime exemption rule, which would have raised the minimum salary threshold to qualify for the Fair Labor Standards Act’s white collar exemption to $47,476 per year, starting December 1, 2016. The rule is now halted indefinitely, giving employers a reprieve until the court rules on the merits of the case.
The lawsuit was filed by 21 states and various employer groups. The court concluded that the FLSA does not grant the DOL the authority to utilize a salary-level test or an automatic updating mechanism under the Final Rule. President-elect Trump has not yet said what his plans are for the overtime rule.
Look for future updates on the Final Rule in Spotlight.
For questions, contact Jason Resnick at (949) 885-2253.