A federal judge issued a preliminary injunction to block implementation of the new FLSA overtime rule slated to go into effect on December 1, 2016, which would require employers to pay salaried exempt employees a minimum salary of $47,476 per year.
Judge Amos L. Mazzant III of the U.S. District Court for the Eastern District of Texas issued a preliminary injunction today, which will temporarily block the December 1 implementation of the overtime exemption salary threshold.
Twenty-one (21) states and numerous business groups filed the lawsuit, challenging the Labor Department's authority to increase the salary threshold by more than double. Judge Mazzant granted the preliminary injunction which applies to all states, not just the twenty-one states that filed the lawsuit.
We will continue to keep you apprised on the status of the new overtime rule. For now, the overtime rule will not go into effect on December 1, 2016. This means that for California employers, the salary threshold for exempt employees remains $41,600 until the end of the year and will increase to $43,680 beginning January 1, 2017 when the state minimum wage increases to $10.50/hour. For employers covered under the federal Fair Labor Standards Act (and not subject to any state laws regarding salary threshold for exemptions) the salary threshold for exempt employees will remain $23,660 ($455 per week) until further notice.
If you have any questions about this article, please contact any member of the Firm. We can be reached at (818) 508-3700, or online at www.brgslaw.com.
Richard S. Rosenberg
Jeffrey P. Fuchsman
Katherine A. Hren
Ballard Rosenberg Golper & Savitt, LLP