Yesterday in a Federal District Court in Texas, a Judge issued a ruling which stays the new FLSA (Fair Labor Standards Act) changes. The previously announced changes increasing exempt employees pay floor to $47,476 is effectively put on hold. There are still the merits of the case to be decided but at least for now, the December 1 deadline is pushed out. The new administration has also indicated they will be pushing to reverse course on the previous rule from the Department of Labor which could take as long as a year to a year and a half.
The case is Nevada v U.S. Department of Labor, 4:16-cv-00731-ALM, U.S. District Court, Eastern District of Texas (Sherman).
If the Court lifts the stay, it is likely to instruct a new deadline for compliance but there is no guarantee. Our recommendation is to still be prepared for the likelihood your organization or business will be impacted during the period between such a determination in Court and the rule change at the Department of Labor.
If you have questions or need assistance with FLSA planning, please contact our offices.