New overtime rule blocked by federal judge

A federal judge in Texas on Tuesday, Nov. 22, issued a nationwide injunction blocking implementation of the U.S. Department of Labor's Fair Labor Standards Act (FLSA) rule concerning overtime pay for certain employees who are currently classified as exempt from overtime. The injunction follows lawsuits filed by multiple states and business groups.

Under the rule, which was set to take effect Dec. 1, all employers would be required to pay a minimum salary of $913 per week, or $47,476 per year in order for an employee to be classified as exempt. Employers in California would need to pay close attention to and adjust salaries over the next several years in consideration of the annual state minimum wage increases due to begin Jan. 1, 2017.

CDA reported on the new FLSA rule in the December CDA Update, noting that the rule would take effect Dec. 1. With the injunction issued, employers are not required to comply with the rule by Dec. 1. CDA will keep members updated on the status of the injunction and court case at cda.org and in the CDA Update.

Questions about the FLSA rule and the injunction may be directed to CDA Practice Support at 800.232.7645.