Yesterday was slated to be the day the new overtime rule change would take effect, increasing the minimum salary level for exempt employees from $455 per week to $913 per week, along with triennial adjustments. On November 22, a federal district court judge in Texas put a halt to the Department of Labor’s (DOL) overtime rule, indicating that the DOL exceeded its authority by increasing the salary threshold.
What does it mean for employers?
You can take a deep breath (just don’t hold it for too long as this is not likely the final ruling on this matter) and continue following the current overtime regulations according to the Fair Standards Labor Act (FSLA). For now it is status quo for businesses, unless your organization already took proactive measures to change employees from non-exempt to exempt or made salary adjustments. “A preliminary injunction preserves the status quo while the court determines the department’s authority to make the final rule as well as the final rule’s validity,” said Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas in a Nov. 22 ruling. We can’t say for certain how long the ruling will be held off.
Employers will most likely want to stick with the decisions that have been implemented to date and hold off on any additional changes until a final ruling is released. Hylant will continue to keep you updated as new and noteworthy information is released.