DOL OVERTIME RULE BLOCKED
Wednesday, November 23, 2016
Finally, some good news for employers. Today a Texas federal judge issued an injunction blocking the Department of Labor’s new overtime regulations that were to go into effect December 1, 2016. Most notorious of the now-blocked regulations is the increase to the minimum salary for exempt employees to $47,476. Our prior article discussing the DOL’s Final Rule can be found here: http://www.mccormickbarstow.com/employment-law-client-alert
Although the salary threshold for exempt status will not be drastically increasing this year, employer’s need to keep in mind that due to the scheduled increases in California’s minimum wage the annual salary requirement for Executive, Administrative and Professional exemptions will still increase to $43,680 on January 1, 2017, and every year thereafter for as long as California’s minimum wage continues to increase (reaching $62,400 in January 2022). As a reminder, salary is only one component of exempt status – employees must also spend most of their time performing exempt duties.
This Employment Law Client Alert is a publication of McCormick Barstow LLP. It is intended to notify our clients and friends of changes and updates to the law and provide general information about employment law matters. This Client Alert is not intended, nor should it be used, as legal advice, and it does not create an attorney-client relationship