Texas Judge Blocks Overtime Regulation from Taking Effect on December 1
A federal district court judge in Texas issued a nationwide injunction yesterday, putting the Department of Labor’s new salary exemption rule on hold. The rule, which was to go into effect on December 1, would have raised the salary threshold for the FLSA’s overtime exemption for executive, administrative, and professional employees from $23,660 to $47,467. The judge held that the Department of Labor may lack authority to set a salary minimum for the overtime exemptions. At this point, the judge’s decision is only preliminary. The decision, however, did signal that the judge may strike down the regulation altogether, after the parties have fully presented their cases. The Department of Labor announced plans to appeal the judge’s decision.
With just a few days left before the implementation deadline, employers who made, or intended to make changes—whether in salaries, schedules or classification as exempt—to comply with Department of Labor regulations may wish to consider whether to put those changes on hold. While some steps, such as evaluating employees’ duties to see if they continue meet an FLSA exemption, are always prudent, others, such as schedule changes, may no longer be necessary. Please contact Ratwik, Roszak & Maloney to discuss what the judge’s order and this ongoing litigation could mean for your workforce.