FEDERAL JUDGE BLOCKS DEPARTMENT OF LABOR RULES

A federal judge has blocked the upcoming Department of Labor overtime and salary rules from taking effect. The rules were originally intended to take effect on December 1, 2016. However, a coalition of states and business groups filed for an injunction in an attempt to prevent the changes. The states and business groups contend the DOL overstepped its authority in establishing both the new minimum salary test of $47,476 and the indexing mechanism — the portion of the law that automatically raises the minimum salary threshold over time. A federal judge heard arguments from attorneys representing the states in State of Nevada, et al. v. United States Department of Labor, et al. on November 16th and delayed issuing a ruling until today, November 22nd, 2016.  

The court has now issued a nationwide injunction preventing the DOL rules from taking effect until further notice by the court. This injunction blocks not only the new salary test, but also the indexing component that increases the salary threshold over time. Although the new rules are currently blocked, employers must continue to abide by the prior rules still in force, including those requiring a salary test of $455 per week. 

If you have any questions about how the ruling affects your business, please contact the attorneys at Monty & Ramirez LLP as soon as possible.