Yesterday afternoon a federal trial court in Texas issued a nationwide preliminary injunction blocking the new FLSA salary regulations from going into effect on Dec. 1. This means that, right now, the new regulations raising the salary threshold test for the white collar exemptions cannot be implemented by the U.S. Department of Labor (DOL). A preliminary injunction does not mean that the new salary threshold rules have been tossed out altogether. It just means that the states and business groups bringing the lawsuit showed a substantial likelihood that they will ultimately prove that DOL did not have the authority to issue the rules and that, in the meantime, they would suffer substantial harm if an injunction was not issued.

 

We will watch for an appeal. If you have already implemented changes in anticipation of December 1, this may not change your plans but it is something to consider. Keep in mind that the current rules remain in place for the executive, administrative and professional “white collar” exemptions. This includes the current salary threshold test of $455 per week, and the job duties tests.