Employers take note: The preliminary injunction granted on Nov. 22, 2016 by a Federal District Court in Texas is only temporary – not a permanent ruling. The injunction, which blocks the U.S. Department of Labor from implementing and enforcing its recently revised regulations on white collar exemptions to the Fair Labor Standards Act (FLSA), simply prevents the regulations from taking effect on Dec. 1. The regulations will more than double the minimum salary requirement that certain executive, administrative and professional employees must receive to be exempt from overtime.
For now, this is good news for employers who have not yet made the necessary changes to their compensation plans. But employers who have already made these changes will need to decide whether they want to continue with the changes, suspend them, or roll them back pending future developments. Decisions should be made according to state and local laws, and employers should consult with their attorneys.
A decision will be issued at a later date on the actual merits of the case, so changes in the FLSA salary threshold for exemption may be back.
More details are available here.
For further information and to learn how REDW can assist you with these and other related matters, please contact Lisa Wilcox or Alicia Finley.
