According to recent reports, a Federal judge in Texas has blocked the new overtime rule, created to raise the FLSA’s salary threshold. An injunction was filed due to a lawsuit challenging the DOL’s authority to raise the salary threshold, bringing organizations across the country to a stand still. Judge Amos Mazzant of the U.S District Court of the Eastern District, who granted the injunction, said, “A preliminary injunction preserves the status quo while the court determines the department's authority to make the final rule as well as the final rule's validity.” www.shrm.org
There is not yet word on how long it will be before the regulation is revised. A statement from the DOL confirmed that they would most likely challenge the injunction. “We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The department’s overtime rule is the result of a comprehensive, inclusive rule making process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.”
What does this mean for your organization?
1. You are no longer required to make any changes on December 1st.
2. The Overtime Rule may still be implemented later on next year. However, there is a high likelihood that the challenge will succeed.
3. If your organization has already raised salaries, you do not have to revert back to the original amounts. However, if you moving towards relabeling employees as exempt or non-exempt, the best decision would be to postpone and wait to see how the litigation plays out.
Still have questions about what these changes could mean for your organization?
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