Changes to FLSA Overtime Exemptions Scheduled to Take Effect December 1, 2016 Blocked by Texas Court

Late on November 22, 2016, the United States District Court for the Eastern District of Texas granted a nationwide preliminary injunction temporarily blocking the enforcement of the Department of Labor's ("DOL") changes to the Fair Labor Standards Act's ("FLSA") overtime exemptions scheduled to take effect December 1, 2016.  Reinhart previously reported on these changes in "Are You Ready?  Updates to FLSA Will Take Effect December 1, 2016."  The court held that the DOL does not have the authority to utilize a salary-level test or an automatic salary updating mechanism.  The DOL is anticipated to seek immediate appeal to the Fifth Circuit Court of Appeals to reverse the stay of enforcement.

Reinhart is monitoring this matter closely and will publish future e-Alerts should anything develop.  Please contact Rob Driscoll or Katie Triska for further guidance.