It looks like Christmas has come early for employers all around the country. On November 22, 2016, a federal judge from Texas issued a nationwide preliminary injunction prohibiting the U.S. Department of Labor from enforcing its new rules regarding the executive, administrative, and professional (“EAP”) exemptions under the Fair Labor Standards Act.
For all those employers who were going to be converted to non-exempt status solely because of the increased salary threshold, those employees can remain exempt. For those employees who were set to receive a pay increase due to the new FLSA rules, employers will need to make the tough decision on whether they will still increase employees’ salaries. Some factors to consider are whether the pay increases have already been implemented or announced, the potential impact on morale, and the company’s budget.
To view a copy of the court’s decision, please click on the following link: FLSA Rules Preliminary Injunction.