Late yesterday, a Texas federal Judge issued a nationwide temporary injunction halting the Department of Labor’s (“DOL”) new overtime regulations, which were set to significantly increase the minimum salary required for the executive, administrative and professional overtime exemptions (known as the white collar exemptions). This unexpected ruling prevents the DOL from implementing the new regulations, which were set to go into effect on December 1st.
The new regulations were introduced back in May and sought to increase the minimum salary threshold from $455/week to $913/week for individuals employed in exempt executive, administrative and certain professional positions. The regulations did not modify the existing duties test, which meant that in addition to satisfying the new salary threshold the worker must continue to meet the actual duties of either an executive, administrative or professional employee to avoid any entitlement to overtime compensation. This increase was expected to impact more than 4 million workers who were anticipating either hefty salary increases or eligibility for overtime as of December 1st. Continue Reading