Court Issues Nationwide Injunction Blocking Department of Labor's New Salary Rule
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Yesterday, the U.S. District Court for the Eastern District of Texas issued an order blocking the December 1, 2016 effective date for the U.S. Department of Labor's Final Rule raising the salary threshold for exempt status. The Court ruled that the plaintiffs in the case (21 states and a variety of business groups) had demonstrated a likelihood of success in their lawsuit as well as irreparable financial harm if the Final Rule went into effect on December 1. The Court's ruling does not eliminate the Final Rule, but indefinitely delays the effective date while the case proceeds to a trial on the merits.
The effect of this injunction is the preservation of what is currently allowed. Until there is a further ruling by the Court, employers may continue to rely on the current $455 per week salary threshold for exempt status.
