Texas Judge Blocks Implementation of U.S. DOL’s Impending Salary Threshold Increase for Exempt Employees

Texas Judge Blocks Implementation of U.S. DOL’s Impending Salary Threshold Increase for Exempt Employees

Nov 30, 2016

Client Alert

Brownstein Client Alert, November 30, 2016

Yesterday afternoon, in action brought by 21 states, a Texas federal court issued an injunction blocking the final rule of the U.S. Department of Labor (“DOL”) regarding Fair Labor Standards Act (“FLSA”) exemptions, which included an increase in the minimum salary requirement applicable to most exemptions. Specifically, as reported in our firm’s previous post, and among other changes, under the DOL’s final rule the minimum salary threshold for the white collar exemptions (i.e., administrative, executive, and professional exemptions, 29 U.S.C. § 213(a)(1)) was to increase to $913 per week, or $47,476 per year (more than doubling the current threshold of $455 per week/$23,600 annually). The rule was slated to become effective Dec. 1, 2016. Employers across the country have been preparing for these changes for months, and many have already implemented the actions necessary to ensure compliance.

To read the full alert, please click the PDF above. 

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