Nevada Association of Employers
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NAE News Highlights
Texas Court Grants Preliminary Injunction Blocking Overtime Rules
On November 22, 2016, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction blocking the new FLSA overtime rules from going into effect.
As a reminder, these rules were set to take effect on December 1, 2016 and would raise the exempt salary threshold to $47,476. Employers have been rushing to analyze affected positions and evaluate compensation in response to the rules.
Now, it is unclear whether the rules will take effect at all. While the injunction would prevent the rules from going into effect only while the merits of the lawsuit against the rules are litigated, it is unclear whether the President-elect plans to keep, modify, or reverse the executive order that led to these rules. What is clear is employers will not be required to comply with the rules by the December 1, 2016 effective date.
The injunction is expressly nationwide in scope, including applying to states that did not join in the lawsuit. Accordingly, pending further action, the December 1, 2016 implementation date of the Final Rule is postponed and employers need not adjust salaries upward in order to continue to claim exempt status.
Nevada Association of Employers will continue to monitor any new developments in this area and keep you updated about any changes that may affect your organization.