Tuesday, November 29, 2016

Nationwide Injunction Halts Department of Labor’s Overtime Expansion

By Timothy M. Cary

New overtime regulations under the Fair Labor Standards Act set to go into effect on December 1, 2016, have been halted by a federal court in Texas. In State of Nevada v. U.S. Department of Labor, the court granted a preliminary injunction in favor of a group of twenty-one states who had opposed the regulations. The injunction maintains the status quo until a final decision is reached in the case at a later date.

What this means for employers is that the present rule remains in effect, and employers are not required to compensate salaried employees for overtime if they are paid a minimum of $455 per week and who perform executive, administrative, or professional duties. The new regulations would have raised the minimum salary to $921 per week. The regulations may be implemented at a later date should the court ultimately find in favor of the Department of Labor. Alternatively, the regulations may be repealed or modified under the incoming administration. We at Dickinson Wright are always available to help you stay on top of these changes.