Last Challenge to New FLSA Overtime Rule Before Implementation on December 1, 2016

On December 1, 2016, the Department of Labor’s overtime rule takes effect, increasing the minimum salary requirement for executive, administrative, and professional employees as exempt from overtime from $23,660 per year to $47,476 per year.  On September 20, 2016, 21 states (not including North Carolina) and over 50 business groups, including the U.S. Chamber of Commerce, filed emergency lawsuits to stop implementation of the new rule.

The states believe the new rule violates the Tenth Amendment by mandating how employees in states are paid, what hours they will work, and what compensation will be paid for overtime.  The business groups contend the new rule disregards the mandate of Congress to exempt white-collar employees from the overtime requirements of the Fair Labor Standards Act.

On November 16, 2016, the court held a preliminary injunction hearing to decide whether to stop implementation of the new rule on December 1, 2016.  A court decision is expected on November 22, 2016.

For more information, please contact Nicole Gardner of Gardner Skelton PLLC.