• Federal Court Stays Implementation of New FLSA Exemption Rules: Fate of Rules Now In Doubt
  • January 12, 2017 | Authors: Charles H. Kaplan; Galit Kierkut; David I. Rosen
  • Law Firms: Sills Cummis & Gross P.C. - New York Office; Sills Cummis & Gross P.C. - Newark Office
  • A nationwide preliminary injunction now precludes the U.S. Department of Labor (“US DOL”) from implementing its new white collar overtime exemption “Final Rule” that would have significantly increased the current salary threshold for the executive, administrative, and professional exemptions under the federal Fair Labor Standards Act (“FLSA”). On November 22, 2016, a federal district judge in Texas halted these increases, that had been scheduled to take effect on December 1, 2016. Under the US DOL’s Final Rule such white collar employees would have needed to earn at least $913 per week (or $47,476 per year) to be exempt from overtime pay on and after December 1, 2016. The fate of the Final Rule is now uncertain. A US DOL appeal of the Texas federal district court’s decision could result in the injunction being lifted and the Final Rule going into effect immediately. However, the election of Donald J. Trump as President creates more uncertainty as even if the current DOL appeals the injunction and wins, the new administration could withdraw the challenge and permit the injunction to stay in place.