December 1 FLSA Overtime Rules Put on Hold!

November 23rd, 2016 by JBWK

Submitted by Elizabeth S. Olcott

Twenty-one states asked the U.S. District Court for the Eastern District of Texas to grant an emergency preliminary injunction to postpone the implementation of the FLSA overtime rules set to go into effect on December 1, 2016. On Tuesday night, Judge Mazzant granted the preliminary injunction. Because of this ruling, the FLSA overtime rules will NOT go into effect on December 1, 2016. The Final Rule was set to increase the minimum salary level for exempt employees from $23,660 annually to $47,476 annually. Employers across the United States have been preparing for the December 1 implementation of the Final Rule by planning to pay previously exempt employees overtime pay, increasing the salaries of previously exempt employees making less than $47,476 annually, or making other tough business decisions to comply with the Final Rule. Now, employers in every state are no longer required to follow the Final Rule on December 1 as the court issued a nationwide injunction. Importantly, this decision is a preliminary injunction and not a final ruling on the validity of the Final Rule. The court is only stopping the Final Rule from going into effect on December 1 so that the court has time to carefully consider the validity of the Final Rule. In the coming months, we will see whether the Final Rule is ruled as invalid and never implemented, or the Final Rule is deemed to be valid and employers will once again need to prepare for implementation of the rule at a later date.



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