Federal Court Delays Implementation of New DOL Overtime Rules

November 22nd, 2016

On November 22, 2016, a judge in the United States District Court for the Eastern District of Texas issued a preliminary injunction blocking the Department of Labor (“DOL”) from implementing its new regulations on “white collar” exemptions under the Fair Labor Standards Act (“FLSA”). These new regulations, which previously were to take effect on December 1, 2016, would have raised the salary threshold for the “white collar” exemption to $47,476 annually (increased from $23,600).

Although the court only issued a preliminary injunction, the implementation date of the regulations is delayed until the court takes further action which may include the issuance of a permanent injunction.

The practical effect of the preliminary injunction is that employers may delay compliance with the new regulations. Employers should, however, be thoughtful in their communications with employees who have already been promised raises effective December 1. In addition, employers who have promised raises or change in exemption status should also check state law if they choose to revoke such offers.

For questions on how this may affect your company, please contact one of our Employment attorneys.