By Elizabeth A. Coonan and Ann Holden Kendell
Late yesterday, a federal court in
Texas issued a nationwide injunction blocking the Department of Labor’s new
overtime rule. This rule aimed to raise the Fair Labor Standards Act’s (FLSA’s)
salary threshold for the white collar exemptions from overtime pay from $23,660
to $47,476 per year.
This means that if you were
contemplating re-classifying your employees due to a salary shortfall, you
don't need to do that....yet. We expect
that the matter will be appealed but in the meantime, employers should follow
the existing rule.
Click
here
for a copy of the court’s Order.
Click
here for a summary
description of the existing rule.
Should
you have any questions about the Order or its impact on your business, please
contact Elizabeth A. Coonan, Ann Holden Kendell or the Brown Winick
attorney with whom you work.
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