Last month we provided information about the new Fair Labor Standards Act (FLSA) regulations that were set to be implemented on December 1, 2016. Those new regulations are now suddenly on hold after a federal judge in Texas ruled in favor of a preliminary injunction that halts their implementation. “A preliminary injunction preserves the status quo while the court determines the department’s authority to make the final rule as well as the final rule’s validity,” said Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas.
What does this mean for employers? Many employers have already gone through the extensive process of evaluating staff members to either make adjustments to their salaries to keep them exempt and meet the new salary requirements, or to change classifications to make them hourly employees who are eligible for overtime.
The job duties test remains unchanged, and the minimum salary requirement for exempt status will remain at $23,660 annually or $455 weekly for the time being. Discussing this with your employees will be paramount, as many of them have probably heard about the injunction and may be concerned about how it will affect them.
As this is only a preliminary injunction, the final rule regulations may be implemented in the future. However, with the current political climate in Washington, the possibility of that happening appears to be slim.
We will keep up to date on this issue as it continues to play out through the courts. Stay tuned for further information as it becomes available.
If you have any questions or concerns regarding this injunction and what it means to you specifically, please contact our office.