A federal court in Texas issued a preliminary injunction yesterday blocking, on a nationwide basis, enforcement of the Department of Labor's new overtime regulations raising the minimum salary threshold for the white-collar exemptions. The regulations were set to go into effect December 1, 2016. This alert explains what the ruling means to local businesses.
New rules from Dept. of Labor will not be enforced Dec. 1 as originally planned
A federal court in Texas issued a preliminary injunction yesterday blocking, on a nationwide basis, enforcement of the Department of Labor's new overtime regulations raising the minimum salary threshold for the white-collar exemptions. The regulations were set to go into effect December 1, 2016. Many businesses have spent weeks and months trying to cope with these regulations and its upcoming implementation and some have already changed payroll practices and classifications of many of its employees.
This preliminary injunction, of course, is not a final decision. It could be appealed, and it will be subject to a later hearing. But for the time being, the new regulations increasing the salary threshold are not going to be enforced as of December 1 as originally thought.
Given the fact that the incoming administration has indicated disagreement with the new regulations, we believe employers are safe to return to their former practice at this time. Should the regulations be implemented at a later date, we anticipate there would be advance notice to allow employers to implement any necessary changes.
Finally, there is no requirement that employers rescind any changes they have already made if they do not wish to do so.
This Alert is provided to Clients and friends of Friday, Eldredge & Clark, LLP. If you have questions regarding any of the items discussed, please contact one of the following attorneys:
Michael S. Moore
(501) 370-1526
[email protected]