The December 1st deadline for U.S. Department of Labor’s increased exempt-status salary thresholds is on hold, at least temporarily.
Last week a federal judge in Texas entered a nationwide injunction blocking the Department Of Labor (DOL) from implementing the new exempt-from-overtime salary threshold that was announced earlier in the year.(Read Frazier & Deeter’s earlier article here.)The court decided that nothing in the Fair Labor Standards Act’s (FLSA) gives the DOL authority to create a “salary test” and concluded that the “white collar” exemption depends on an employee’s duties rather than the employee’s salary.
Given the December 1st deadline most employers have already prepared for the change. If you haven’t, this ruling means you’re no longer under the gun to make changes this week.
All eyes will be on the courts to see what happens next in this evolving situation.