FLSA Overtime Rules Suspended: No Change Necessary for December 1

The United States Department of Labor issued new regulations this year establishing new salary minimums effective December 1, 2016.  Employers with overtime-exempt employees have been gearing up to change salary compensation to at least $47,476 per year.

This is significantly more than the current California salary minimum, $41,600.

On November 22, the United States District Court for the Eastern District of Texas issued a preliminary injunction forbidding the Department of Labor from applying or enforcing the rule.  For this reason, employers currently need not make any changes on December 1.

The Department of Labor could file an emergency motion to stay the injunction with the Fifth Circuit Court of Appeals – a conservative court unlikely to intervene.

If this is denied, the department’s only other option is a motion to the “circuit justice,” a United States Supreme Court justice assigned to oversee the Fifth Circuit.  That justice is Clarence Thomas, probably the most conservative Supreme Court member and one of the most unfriendly to federal agency action.

The case still must move to trial and through eventual appeals.  But given this ruling, and the federal administration arriving in January, the new regulations are effectively dead.

Source: Rybicki & Associates Employment Law Blog

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