Last week, a federal judge in Texas halted the implementation of new federal overtime regulations that were set to take effect December 1, 2016. As many of you know, these new regulations would increase the salary level necessary for certain white collar employees to be classified as exempt from overtime pay.
Although the new regulations are now delayed, the final outcome will depend on the lawsuit in which 21 states and more than 50 business groups are challenging the new regulations. There is no established timetable for the court to rule on these challenges. Further uncertainty about the fate of the new regulations is also arising from the change to the Trump administration in January 2017, because it is unclear whether a Trump Department of Labor will continue to defend the regulations in the lawsuit.
These recent developments raise complicated questions for organizations that had prepared to implement new salary levels and classifications effective this week.
For those of you who have questions or concerns about appropriate next steps, please feel free to contact us.
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