Thought Leadership

New Overtime Regulations Enjoined Nationwide

November 23, 2016 Advisory

A Texas federal district court judge on Tuesday issued a preliminary injunction temporarily blocking the nationwide implementation and enforcement of the new overtime regulations. The regulations were set to go into effect on December 1, 2016, and would have doubled the minimum salary requirements for the main exemptions under the Fair Labor Standards Act (FLSA).

So, practically speaking, what does this mean for your business?

  1. The new regulations will not go into effect on December 1, 2016, and may never go into effect. There is no current legal requirement to comply with the new minimum salary requirements. While the duties tests for the various exemptions, which were unchanged by the new regulations, still apply, the higher minimum salary requirements are currently blocked. In short, at least for now, the minimum salary test remains at the current threshold of $455 per week and $23,660 per year.
  2. While the legal requirements may not change on December 1, your business may have already taken steps to implement the changes effective on that date. You are certainly permitted to proceed with those plans if, from a business and employee relations perspective, you believe that is the best course of action at this time. However, you are no longer required to proceed with those changes to comply with the FLSA. Keep in mind that if you have entered into any agreements of a contractual nature with employees related to their new compensation or wages, you will want to ensure any reversal of those adjustments complies with those agreements and any applicable state laws. The bottom line is that you now have options that didn’t exist a week ago, but the ramifications of those options could have a greater effect on employee morale than on compliance with the law.
  3. Your preparations may have revealed employees who were misclassified as exempt based on their job duties, and you either already transitioned or were going to transition those employees to non-exempt status. Those changes should still occur because the job duties tests remain unchanged.
  4. While we can say with certainty what will not happen on December 1, how the legal landscape plays out remains unknown. The next step would likely be the Judge making his injunction permanent. It is unclear when that might happen and the DOL could then seek to appeal that final ruling. The decision of whether to appeal will likely be made under the new administration. While we cannot predict whether the new administration will pursue such an appeal, the lack of an appeal would essentially render the Texas judge’s decision to be final. In any event, even if an appeal is pursued, that process is not likely to begin (and certainly will not be anywhere near completion) prior to the inauguration of the new President, and the new administration could decide to withdraw the appeal. Finally, even if an appeal by the DOL would be successful and the injunction lifted, the new regulation would not be implemented retroactively. We would then need to stay tuned for a new implementation date.
Contact Us
  • Worldwide
  • Boston, MA
  • Denver, CO
  • Dublin, Ireland
  • Edwardsville, IL
  • Jefferson City, MO
  • Kansas City, MO
  • Las Vegas, NV
  • London, England
  • Miami, FL
  • New York, NY
  • Philadelphia, PA
  • Princeton, NJ
  • Salt Lake City, UT
  • St. Louis, MO
  • Washington, D.C.
  • Wilmington, DE
Worldwide
abstract image of world map
Boston, MA
800 Boylston St.
30th Floor
Boston, MA 02199
Google Maps
Boston, Massachusetts
Denver, CO
4643 S. Ulster St.
Suite 800
Denver, CO 80237
Google Maps
Denver, Colorado
Dublin, Ireland
Fitzwilliam Hall, Fitzwilliam Place
Dublin 2, Ireland
Google Maps
Edwardsville, IL
115 N. Second St.
Edwardsville, IL 62025
Google Maps
Edwardsville, Illinois
Jefferson City, MO
101 E. High St.
First Floor
Jefferson City, MO 65101
Google Maps
Jefferson City, Missouri
Kansas City, MO
2345 Grand Blvd.
Suite 1500
Kansas City, MO 64108
Google Maps
Kansas City, Missouri
Las Vegas, NV
1980 Festival Plaza Drive, Suite 750
One Summerlin
Las Vegas, NV 89135
Google Maps
Las Vegas, Nevada
London, England
Royal College of Surgeons of England
38-43 Lincoln’s Inn Fields
London, WC2A 3PE
Google Maps
Miami, FL
355 Alhambra Circle
Suite 1250
Coral Gables, FL 33134
Google Maps
Photo of Miami, Florida
New York, NY
7 Times Square, 44th Floor
New York, NY 10036
Google Maps
New York City skyline
Philadelphia, PA
2005 Market Street
29th Floor, One Commerce Square
Philadelphia, PA 19103
Google Maps
Philadelphia, Pennsylvania
Princeton, NJ
100 Overlook Center
Second Floor
Princeton, NJ 08540
Google Maps
Princeton, New Jersey
Salt Lake City, UT
201 South Main Street
Suite 750
Salt Lake City, UT 84111
Google Maps
Salt Lake City, Utah
St. Louis, MO
7700 Forsyth Blvd.
Suite 1800
St. Louis, MO 63105
Google Maps
St. Louis, Missouri
Washington, D.C.
1050 Connecticut Avenue NW
Suite 500
Washington, DC 20036
Google Maps
Photo of Washington, D.C. with the Capitol in the foreground and Washington Monument in the background.
Wilmington, DE
1007 North Market Street
Wilmington, DE 19801
Google Maps
Wilmington, Delaware