NEW SALARY THRESHOLD FOR EXEMPT EMPLOYEES BLOCKED – ttc

NEW SALARY THRESHOLD FOR EXEMPT EMPLOYEES BLOCKED

11-29-16 — In an unexpected ruling, a Federal Judge in Texas has blocked new FLSA Rules that were to take effect on December 1, 2016 that would have increased the minimum salary for employees to qualify as Exempt and would have extended overtime pay requirements to an estimated 4 million workers in the U.S.

Background – New FLSA Exempt Status Rules

In July of 2016, new rules for Exempt Status under the Fair Labor Standards Act (the “FLSA”) were published by the U.S. Department of Labor (DOL) based on a review process that began in 2014. Among other changes, the new rules increased the minimum salary threshold for an Executive, Administrative, or Professional employee to be considered Exempt from overtime requirements. The threshold increase from $455 to $917 per week was scheduled to go into effect as of December 1, 2016.

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