FLSA REGULATION CHANGES WILL NO LONGER TAKE EFFECT ON DECEMBER 1, 2016

Earlier this year, we posted several messages concerning upcoming changes to the Fair Labor Standards Act (“FLSA”) which were scheduled to go into effect on December 1, 2016.  Most notably, the changes would have approximately doubled the salary threshold required for many employees to be exempt from overtime pay.

Last week, a federal judge in Texas issued a preliminary injunction which will delay the new regulations from going into effect.  It is now unclear if or when the new regulations will be implemented.   The injunction was issued after twenty one states filed an emergency motion arguing that the Department of Labor had exceeded its authority in promulgating the new regulations.

A preliminary injunction is not permanent, but rather serves to preserve the status quo for the time being while the parties and the court litigate regarding the ultimate fate of the new regulations.  Consequently, there is a chance the new regulations will go into effect in the future.  We will continue to monitor the issue and provide new information as it becomes available.  For now, employers are faced with the difficult decision of whether to roll-back workplace policies, salary changes, and other measures they had already put into place in anticipation of the effective date.

If you have questions about this matter, or about any other employment law issues, please contact Attorney Michael P. Doherty, Andrew M. Kepple or one of our other employment attorneys at 508 541-3000.