In May 2016, we wrote about the United States Department of Labor’s (“DOL”) newly approved Final Rule expanding overtime coverage to an additional 4.2 million employees. In general, the Final Rule substantially increased the weekly salary level requirement for exempt employees from a minimum of $455.00 to $913.00. Additionally, the Final Rule provided for automatic updates every three years. The Final Rule was set to take effect on December 1, 2016.
Following enactment of the Final Rule, several states filed a federal lawsuit seeking to bar enforcement and overturn the rule. On November 22, 2016, a Texas federal judge sided with the states and issued a nationwide preliminary injunction barring enforcement of the Final Rule. The nationwide injunction is temporary only, in order to allow the court more time to receive evidence and issue a final ruling as to whether the DOL exceeded its statutory authority in implementing the Final Rule.
In sum, the DOL’s expanded salary requirements for exempt employees will not take effect on December 1, 2016, as originally planned. The fight is not over, so please stay tuned for further developments on how the DOL overtime rule plays out.