Court Suspends New Overtime Rule

Court Suspends New Overtime Rule: WILL NOT TAKE EFFECT DECEMBER 1

On November 22, 2016, a judge in the Eastern District of Texas issued a nationwide preliminary injunction enjoining implementation and enforcement of the new FLSA overtime regulations, which were scheduled to become effective December 1, 2016. The new regulations, announced in May, would have increased the minimum salary level for exempt executive, administrative, and professional employees from $455 per week to $913 per week effective December 1, 2016. The regulations also would have increased the minimum compensation requirement for highly compensated employees to the annual equivalent of the 90th percentile of full-time salaried workers ($134,004 annually).

Under the preliminary injunction, the US Department of Labor is prohibited from implementing and enforcing the new overtime regulations pending final resolution of the case. The current regulations remain effective. Employees classified as exempt must still qualify under the duties test, and the current salary requirements remain unchanged ($455/week, $23,668/year for executive, administrative, and professional employees under standard duties test).

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