260.423.9551Call
215 East Berry Street
Fort Wayne, IN 46802

Overtime Rule Stayed by Judge in Texas

On November 22, 2016, a Texas federal judge issued an Order that blocks nationwide the new Fair Labor Standards Act salary requirements for overtime and minimum wage exemptions based on executive, administrative, or professional capacity. The regulations were to take effect on December 1, 2016, but have now been blocked. Therefore the higher salaries set by the Department of Labor for these exempt employees will not become effective December 1, 2016. Litigation will continue on the issue. Ultimately a permanent injunction could be ordered. It is also possible that ultimately the Department of Labor will prevail and at some future date the new salary rule will become effective. In addition, there is legislation pending in Congress that could also impact the salary exempt issue.

At this time, the order allows employers to maintain the status quo. Maintaining the status quo also leaves in place the current minimum salary level of $455 per week for these exemptions. However any employer that has already analyzed the duties performed by any employee and determined that the employee does not perform exempt duties, must still treat that employee as non-exempt. Thus, this employee's hours must be tracked and he/she must be paid overtime for hours work in excess of forty hours.

If you, as an employer, still need to analyze whether your employees would have been effected or would like to further discuss this issue, please do not hesitate to contact a member of our Employment Law team.

Click here to read the order. 

Legal Disclaimer

The information contained in the Barrett McNagny LLP website is for informational purposes only and should not be considered legal advice on any subject matter. Furthermore, the information contained on our website may not reflect the most current legal developments. You should not act upon this information without consulting legal counsel.

Your transmission and receipt of information on the Barrett McNagny LLP website, or sending an e-mail to one of our attorneys or staff, will not create an attorney-client relationship between you and Barrett McNagny LLP. If you need legal advice and want to establish an attorney-client relationship with Barrett McNagny LLP, please contact one of our attorneys by telephone, email, or other means of communication, and allow the attorney to confirm that the firm does not represent other persons or entities involved in the matter and that the firm is willing to accept representation. Until such confirmation is provided by one of our attorneys, you should not transmit information to us that you consider confidential. If you do provide information to us, and no attorney-client relationship is established, the information will not be considered confidential or privileged, and our receipt of such information will not preclude us from representing another client in a matter adverse to you.

Any links to other websites are not intended to be referrals or endorsements of those sites.

An attorney-client relationship will NOT be formed merely by sending an email to Barrett McNagny, LLP or to any of its attorneys. Please do not send any information specific to your legal needs until you obtain approval from a Barrett McNagny, LLP attorney, as the content of such email will not be considered confidential or privileged. By sending us an email, you confirm your understanding of this notification. If you agree, you may use the e-mail links on this page to contact an attorney.
YesNo