The New Federal Overtime Rules

On November 23, 2016, a federal district court in Texas issued a nationwide preliminary injunction preventing the Department of Labor from implementing and enforcing its new overtime rules. The new rules increased the salary threshold to qualify for the white collar exemptions under the Fair Labor Standards Act to $913/week. This means that, as of now, the rules will likely not go into effect on December 1, 2016 as planned. However, the Department of Labor will probably appeal the decision. We will inform you of further developments.

Employers who have started down the road to compliance may want to consider the following options:

  • If plans to reclassify exempt employees to non-exempt status have not been communicated to employees yet, hold off on doing so for now.
  • If reclassification plans were communicated but not yet implemented, communicate that implementation is postponed in light of legal developments.
  • Rescinding reclassifications that have already been implemented is possible but creates serious legal and employee relations issues, and should only be undertaken after consultation with an employment attorney.

Links to resources

Texas Grants Nationwide Preliminary Injunction, Jackson Lewis

Federal Court Blocks New Overtime Rule, Littler

Federal Judge Hits Pause Button on Overtime Rule, National Council on Nonprofits