November 23, 2016 – A federal judge in Texas granted a nationwide preliminary injunction yesterday temporarily blocking the new overtime regulations scheduled to take effect on December 1. Twenty-one states, including Arizona, and over 50 business organizations sued to challenge the new regulations that were issued by the Department of Labor earlier this year.
As a result, the increased salary threshold for white-collar exemptions (executive, administrative, or professional employees) will not go into effect next week. Employees who meet the duties test for any of these exemptions can continue to be exempt from overtime pay if they make more than $455 per week. (The blocked rule raised this amount to $913 per week.)
The injunction is preliminary, not permanent, so there is a possibility that the rule could become effective later. Contact any of Gust Rosenfeld’s employment attorneys to learn more about how to stay in compliance with the overtime provisions of the Fair Labor Standards Act.
For more information or questions, please contact any of the attorneys below:
or any of the Firm’s Labor & Employment Law attorneys.