FLSA Updates

Nationwide Injunction on “minimum salary test” amount

We hope this message finds you well.  We wanted to provide the following information from the Legal Services Department here at GCFA.

Yesterday, Judge Mazzant of the U.S. District Court in the Eastern District of Texas issued a Memorandum Opinion and Order in the case challenging the Department of Labor (“DOL”) revisions to the “white collar” exemptions to the overtime provisions of the Fair Labor Standards Act (“FLSA”). Those revisions would have significantly changed the “minimum salary test” for determining whether an employee should automatically be categorized as a non-exempt employee, by raising the minimum salary threshold from $455 per week ($23,600 annually) to $921 per week ($47,892 annually).  The revisions would have also established an automatic updating mechanism to adjust the threshold every three years.  In the Opinion and Order, the Court granted the plaintiffs’ motion for a temporary, nationwide injunction. The injunction postpones implementation and enforcement of the revisions which were to go into effect on December 1, 2016.