The new Fair Labor Standards Act (“FLSA”) overtime rule, which set to raise the white collar exemption minimum salary requirement from $23,660 per year to $47,476 per year effective December 1, 2016, was blocked this afternoon by a Texas federal judge. The judge indicated that the plaintiffs, comprised of 21 states, met the burden required for a preliminary injunction finding that the Department of Labor (“DOL”) exceeded its delegated authority. The court held that the DOL does not have the authority to utilize a salary-level test or an automatic updating mechanism. The DOL is now enjoined from implementing and enforcing the rule pending further order of the court. Stay tuned – we are continuing to monitor the developments regarding this important subject that impacts millions of employees and will continue reporting as more information becomes available.
The case is State of Nevada, et al v. United States Department of Labor, et al, case number 4:16-cv-00731, United States District Court for the Eastern District of Texas
