Archives—December 2016

FLSA Updates

 

Human Resources has worked over the past several months on analyzing the changes to the overtime rule which was to increase the salary threshold for a position to be considered exempt from overtime.  These changes were to be effective December 1, 2016.

However, last week a temporary delay of the Department of Labor’s FLSA changes has placed an injunction on these changes.  Here is what we know right now (courtesy of College and Universities Professional Association for Human Resources (CUPA-HR):

 

A U.S. District Court judge from Texas issued a preliminary injunction postponing the effective date of the U.S. Department of Labor (DOL)’s overtime rule. The judge issued the injunction in response to a legal challenge brought by a coalition of more than 50 business groups and 21 state attorneys general. The rule was scheduled to go into effect on December 1.

Originally, two lawsuits challenging the rule were filed in federal court on September 20 — the first suit on behalf of 21 state attorneys general and the second on behalf of a group of trade associations and chambers of commerce. On October 12, the states filed an emergency motion to temporarily prevent the rule from taking effect while the court challenge proceeds. On October 19, the judge granted a request filed by the states and the 50 business groups to have their two cases consolidated.

It is expected that DOL will appeal this ruling quickly, however it is uncertain how long the appeal may take. If the preliminary injunction pushes the implementation date from December 1 to past January 20, 2017, then there will be room for the Trump administration to reopen the rulemaking and revise the final rule.  

This injunction has delayed the effective date of the new salary threshold in order to remain exempt from overtime.  Keep in mind, this injunction is temporary and could change at any point in time. Human Resources will continue to update as new developments arise.