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FEDERAL COURT BLOCKS DEPARTMENT OF LABOR’S NEW OVERTIME PAY REGULATIONS

On November 22, 2016, the United States District Court for the Eastern District of Texas issued a nationwide preliminary injunction temporarily preventing the Department of Labor’s new overtime pay regulations from taking effect. The new regulations, which had been scheduled to take effect on December 1, 2016, re-defined which employees are exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). The new regulations would have raised the minimum salary level for exempt employees from $455 per week ($23,660 annually) to $913 per week ($47,476 annually), drastically expanding the pool of employees eligible for overtime pay.

For the present time, while the injunction is in effect, employers may continue to classify and treat their exempt employees as before – even if they make less than $913 per week. However, employers should remain mindful that the injunction is temporary; employers should remain ready to comply with the new regulations if the Court’s decision is reversed on appeal.

The Mitzel Group will continue to provide updates on this matter and encourages employers to check back often. As always, please contact our office at info@mitzelgroup.com with any questions or concerns.