News

Department of Labor Minimum Salary Increase Temporarily Halted

On Tuesday, November 22 the United States District Court for the Eastern District of Texas granted a preliminary injunction that will temporarily prevent the Department of Labor from enforcing its new overtime rule raising the minimum salary requirement for people whose duties would normally make them exempt from overtime to $47,476 per year. The DOL’s rule was set to take effect on December 1, 2016 and would have made more than 4 million additional employees eligible for overtime pay. A copy of the decision can be found here.

This is good news for employers, but the new salary threshold could resurface if the Judge changes his mind and declines to make the injunction permanent (which will probably be decided in the first quarter of 2017) or if the DOL successfully appeals a permanent injunction to the Fifth Circuit Court of Appeals (which will probably be decided by the end of summer, 2017).

Although President-elect Trump opposed the new rule during his campaign, he has not taken an official post-election position.

If you would like to discuss a strategy for dealing with this ruling, please contact Chris Hesse – chrishesse@hessemartone.com / 314.862.0300.