Injunction Blocking New Overtime Regulations
Yesterday, November 22, 2016, a federal district court in Texas granted a preliminary injunction that temporarily blocks the U.S. Department of Labor (DOL) from implementing and enforcing its recently revised regulations on the white collar exemptions to the Fair Labor Standards Act (FLSA). The recent regulations that were to go into effect on December 1, 2016, would more than double the minimum salary requirements certain employees must receive in order to be exempt from overtime.
Please note that this is only a temporary injunction, not permanent. This only prevents the regulations from going into effect on December 1, so they could potentially just be pushed back to a later date.
Impact for Employers
This could be good news for some employers who have not yet made any changes to their compensation plans – you now have some extra time. But for those that have already made the necessary changes, you will need to determine if you want to continue with the changes, suspend the changes, or roll back those changes pending any legal developments. Employers should consult with their attorneys to determine what course of action is best for them.
For more information contact firstname.lastname@example.org. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.