Injunction Blocks New FLSA Overtime Rules

New Fair Labor Standards Act (FLSA) overtime rules proposed by the Department of Labor that would more than double the salary thresholds for "white collar" employees were set to go into effect on December 1st of this year.

However, at the request of more than 20 State Attorneys General, Federal Judge Amos Mazzant of the Eastern District of Texas, an Obama appointee, granted a nationwide preliminary injunction against the Department's proposed rule, finding that the AG plaintiffs had shown both a likelihood of success on the merits and irreparable harm in the absence of the injunction.

Although the Judge noted that the ruling "only delay[s] the regulation's implementation," it is unlikely that the District Court will reverse course or the Court of Appeals will overturn the injunction prior to President-elect Trump's inauguration. Trump has stated that the proposed overtime rule was the type of "burdensome" business regulation he would seek to roll back as President.

In the meantime, employers may face a difficult situation. If employers have not already increased salaries or converted employees to non-exempt positions, they may postpone these changes indefinitely. Employers who have already made changes, or have informed their employees of upcoming changes, may need to seek legal guidance prior to communicating the ruling to their employees or making any rollbacks in salaries or positions.  

The attorneys of The Harris Firm, P.C. can refer anyone who might have questions or concerns about the FLSA to excellent legal counsel. Please feel free to contact us with any questions or comments.