New Overtime Rule Blocked by Federal Judge


On Tuesday,  November 22,  a federal judge in Texas issued a nationwide injunction blocking implementation of the U.S. Department of Labor's Fair Labor Standards Act (FLSA) rule concerning overtime pay for certain employees who are currently classified as exempt from overtime. The injunction follows lawsuits filed by multiple states and business groups.

Under the rule, which was set to take effect Dec. 1, all employers would be required to pay a minimum salary of $913 per week, or $47,476 per year in order for an employee to be classified as exempt. Employers in California would need to pay close attention to and adjust salaries over the next several years in consideration of the annual state minimum wage increases due to begin Jan. 1, 2017.

With the injunction issued, employers are not required to comply with the rule by Dec. 1.  And,  the results of the recent elections makes it highly unlikely that the rule will be implements.  CPMA will keep members informed