Subject: Fair Labor Standards Act (FLSA) Overtime Update

For months, we have been following a Department of Labor Fair Labor Standards Act rule that would dramatically change minimum salary requirements for exempt employees or change who would be eligible for overtime under the new rules.  The Administration began the process of reviewing all “exempt” employees to determine those employees who would be affected.  That review was nearing completion and implementation processes were being developed.  However, on Tuesday, November 22, 2016 a U.S. District Court Judge from Texas issued a preliminary injunction postponing the effective date, originally set for December 1, 2016.

What does this mean for the employees who were being reviewed?  For now, this means that work to transition identified employees to a new pay classification of non-exempt has also been delayed.  It is expected that the Department of Labor will likely appeal the ruling, but it remains uncertain just how long the appeals process will take.  

To read about the final rule signed on May 18, 2016 and the most recent information regarding the imposed injunction, please visit the U.S. Department of Labor’s website at: https://www.dol.gov/WHD/overtime/final2016/.

Paul McCann,
Interim Vice-President for Business Affairs