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New Overtime Ruling Blocked, For Now

  • 29 November 2016
  • Author: Alexander Carr
  • Number of views: 1913
  • 0 Comments
New Overtime Ruling Blocked, For Now

If you’ve been sweating out the new overtime law changes going into effect December 1, 2016, you have a bit more time to plan. Just last week, the United States District Court for the Eastern District of Texas issued a preliminary injunction blocking the U.S. Department of Labor's new rule, which would have more than doubled the minimum salary level for exempt employees from $455 per week ($23,660 annually) to $913 per week ($47,476 annually). 

However, as the attorneys at Littler Mendelson point out, this is a temporary injunction. Employers should remain ready to comply quickly if the decision is reversed. What’s more, if you’ve already announced pay raises or other changes for employees, this news may come too late.

“Before moving employees back to exempt status, employers should ensure they meet the job duties requirements for exemption under both the Fair Labor Standards Act (FLSA) and state laws, and comply with state law requirements regarding notices to changes in pay,” Littler Mendelson attorneys suggest. “Because taking away proposed salary increases may lead to employee relations issues, employers may prefer to adjust by slowing future increases or reversing the changes over a set period of time.”

For more on the issue, read Littler Mendelson’s post here.

Image Copyright: imilian / 123RF Stock Photo
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