On November 22, 2016, a US Court in Texas entered an order
providing a nationwide injunction blocking the enactment and enforcement of the
new FLSA minimum salary threshold for exempt employees. The ruling comes just
before the new minimum salary requirement was set to take effect later this
week.
What does this mean for your business? As it stands, the
current salary threshold, $23,660 annually / $455 per week will remain in
effect until the temporary injunction is vacated or modified upon appeal. None of these nullifying events are likely to
occur prior to the previously scheduled December 1 implementation date.
The increase in minimum salary was expected to impact over 4
million employees. Unfortunately, most
employers have already made the decision and told their employees that their
salaries were being increased or they were being converted to hourly employees,
making them subject to the overtime regulations.
Despite this pro-employer ruling, the status of the
temporary injunction should be closely monitored. If the injunction is lifted or modified,
employers may be in the same position they were faced with prior to last
Tuesday's ruling.
Please feel free to call and/or email Cobbe Law directly
with any questions or concerns.
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