Injunction Issued on New Salary Thresholds for FLSA Exemptions

OVERTIME red Rubber Stamp over a white background.

By:  Edmund O’Meally, Esquire                                                                        eomeally@pklaw.com

We had previously advised that the Department of Labor had issued new overtime regulations that were to go into effect on December 1.  The new regulations more than doubled the salary threshold needed for most exempt employees in order to maintain their exemption from overtime.    

Yesterday, a federal judge in Texas issued a nationwide injunction prohibiting the Department of Labor from implementing the new salary thresholds for FLSA exemptions.  According to the Court, the regulatory change was not allowed in the statute itself and essentially created a de facto salary-only test.  Of note, the duties test (e.g., executive, professional, administrative, etc.) still apply.   Secretaries, office clerks, custodians, paralegals, etc. will still be eligible for overtime if they work more than 40 hours a week. 

Although there will likely be an appeal, unless the case is resolved before the inauguration, it is unlikely that President Trump will pursue the matter in an effort to raise the salary threshold.

PK Law will continue to monitor the situation and keep you updated.  Please contact PK Law Member Edmund O’Meally or other members of PK Law’s Labor and Employment Department with questions.