On November 22, 2016, a Texas judge ruled in favor of a lawsuit blocking the nationwide implementation of the new overtime rules that would have been effective December 1, 2016. The lawsuit argued that the Department of Labor (DOL) exceeded their authority by nearly doubling the minimum salary threshold to qualify as an exempt employee. As we have been communicating over the last several months, the current minimum salary is $455 a week and would have increased to $913 a week. However, with this ruling, the minimum of $455 a week will remain.
This ruling was very unexpected, as most predicted this would not be overturned because the judge hearing the case was appointed by President Obama. Unfortunately, many employers have already made adjustments and communicated to employees. For some, rolling back these changes may be difficult for morale or retention reasons. Please feel free to contact us to discuss further and strategize your response.