FLSA Legal Update

The Department of Labor’s Overtime rule, which was set to go into effect December 1st has been blocked by a federal judge. This new rule would have raised the minimum salary for most exempt employees to $913 per week and would have automatically adjusted the threshold every three years beginning in 2020.

For now, employers do not need to implement changes by December 1st. If you have not already made changes to reclassify employees, you may want to postpone doing so at this time. However, if you have implemented changes and raised otherwise exempt employees’ salaries to meet the proposed $913 per week, consider leaving those changes in place.

It is important to note that this decision will be appealed to the Fifth Circuit Court of Appeals, hence there is a chance that the judge’s ruling can be reversed.