There has been an injunction issued that will temporarily block the Department of Labor from implementing the revised white collar salary and overtime regulations on a nationwide basis. The injunction was issued by a federal court judge in Texas. The injunction was issued on the basis that the 21 states and several business organizations that filed cases would be irreparably harmed if the rule was not enjoined.
The regulations originally scheduled to take effect on December 1
, 2016 would have raised the salary threshold for determining exempt status from $455 per week to $913 per week. While this injunction prevents the new regulations from taking effect on December 1
, it does not mean that this new rule will never be implemented. Employer groups are hopeful that the Trump administration will drastically revise the new set of regulations. The benefit of the proposed change in regulations has made many companies realize that there is a two-step process for determining exempt status. The two-step process is comprised of a salary test and a duties test. The salary test guideline changes have been temporarily enjoined but that does not mean that employer's should stop applying the duties test.
Employers should still be accessing the exempt positions and determining if they are in fact positions that should be exempt or if the employees should be eligible for overtime.