November 28, 2016

New FLSA Overtime Rule ON HOLD

New FLSA Overtime Rule on Hold

On Tuesday, November 22, 2016, a federal judge in Texas issued an injunction regarding the new overtime law that was to take effect December 1, 2016, putting on hold the FLSA overtime changes employers across the country have spent the last few months preparing for.

If upheld, the final rule would increase the salary threshold for exempt employees to more than double at $47,476 and would require employers to pay overtime to any employee who is under that threshold, no matter their job duties.  This injunction will put implementation of the changes within the final rule on hold while the courts determine whether or not the Department of Labor (DOL) has the authority to make such a final rule, as well as the validity of the final rule itself.

What does this mean for employers right now?  Employers will not need to reclassify employees on December 1st as nonexempt (hourly) as long as the employee is currently making more than $23, 660 and falls within the current DOL exemptions.  How long it will take for the court to review is anyone’s guess, so remain vigilant for any changes that may be coming down the pike.  KLC will continue to monitor this situation and update you as soon as information is released. 

If you have any questions on this new development contact Andrea Shindlebower Main, personnel services specialist at 859-977-3785 or