BREAKING NEWS: DOL's Overtime Rule Blocked By Texas Judge
Article by John Gardiner
A Texas federal judge on Tuesday (November 22, 2016) entered a nationwide injunction (2nd Circuit Court of Appeals No. 4:16-cv-00732) blocking the U.S. Department of Labor (DOL) from implementing a rule that would have expanded overtime protections as of December 1, 2016, saying the rule improperly created a de facto salary test for determining which workers fall under the Fair Labor Standards Act’s so-called “white collar” exemption. This delay of the December 1, 2016 implementation of a regulation tables for now a rule change that would have extended overtime eligibility to an estimated 4.2 million workers. The 21 states (including Michigan) challenging the overtime rule have (for now) successfully argued that the DOL did not have the authority under the Fair Labor Standards Act (FLSA) to set a salary level for exempt employees.
Circumstances surrounding the new overtime rule were already in a state of flux following the election of Donald Trump (November 8, 2016) with some sources predicting that President-elect Trump would not be able to prevent the December 1, 2016 effective date prior to taking office, but instead predicting that President Trump may be receptive to calling for a small-business exemption and doing away with the triennial automatic increases after he takes office January 20, 2017.
As of now the rule, including the December 1, 2016 implementation date, has been blocked; continue to diligently make sure your employees meet the existing “white collar” exemptions irrespective of the salary threshold increase (if applicable) and otherwise stay tuned….
Read related content from Kreis Enderle attorneys for context on employment law:
- New Year’s Regulation: Misclassifying Employees as Exempt
- Kreis, Enderle, Hudgins & Borsos Employment Alert
- New Overtime and ‘Exempt’ Rules Apply December 1, 2016