A federal district judge in Texas has entered a nationwide injunction which prevents the U.S. Department of Labor’s new FLSA minimum salary level rule from going into effect on December 1, 2016. Prior to today, the DOL’s new rule would have nearly doubled the minimum weekly salary required in order to be exempt under the so-called white collar exemptions (the executive, administrative and professional employee exemptions).
The court found that the Department of Labor exceeded its authority when it issued the final rule in May 2016. The court also found that the Department of Labor ignored Congress’s intent by raising the minimum salary level such that it supplants the duties test. The court’s preliminary injunction ruling will preserve the status quo until the court makes additional determinations related to the Department of Labor’s authority and the final rule’s validity.
Until further notice, the minimum salary threshold remains at $23,660 a year ($455 per week). Stay tuned for further analysis.