TLA

Federal Court Blocks FLSA Overtime Rule

On November 22, 2016, the U.S. District Court, Eastern District of Texas, granted a preliminary injunction to block the Department of Labor’s implementation of the Fair Labor Standards Act (FLSA) new overtime rule. Twenty-one states and over 50 business organizations filed the lawsuit to challenge the new rule to increase the minimum salary level for exempt administrative employees from $455 per week ($23,660 annually) to $921 per week ($47,892 annually). The new rule was to become effective December 1, 2016. Finding that the plaintiffs satisfied all prerequisites for a nationwide injunction,  the court ruled that the “[t]he State Plaintiffs’ have established a prima facie case that the Department’s salary level under the Final Rule and the automatic updating mechanism are without statutory authority.” Click here​ for the decision.

Federal Court Blocks FLSA Overtime Rule