November 23, 2016 Article

Alert: Texas Court Issues Preliminary Injunction Blocking DOL's New Overtime Rules

Employment Alert

A United States District Court in Texas has issued an order enjoining, on a preliminary basis, the United States Department of Labor (DOL) from implementing and enforcing regulations that increase the salary threshold for exempt employees to $913 per week or $47,476 per year beginning December 1, 2016.  In reaching its decision, the Court determined that the Plaintiffs in the case had established a substantial likelihood of success on their claims that the DOL did not have authority to define and delimit the exempt classifications for executive, administrative and professional employees based on an employee’s salary.  The preliminary injunction has nationwide application.

A preliminary injunction preserves the status quo while the court determines the DOL’s authority to make and implement the regulations and the validity of the regulations. This preliminary injunction means that the new regulations will not take effect on December 1, 2016, and that at least for now, employers will not have to make or implement changes to comply with the increased salary threshold for exempt employees. However, this decision does not necessarily eliminate the possibility that the new rules will be implemented in the future. Stay tuned for further developments.

Firm Highlights


Families First Coronavirus Response Bill

The federal government has enacted the COVID-19 Coronavirus Response Act, requiring employers with fewer than 500 employees to provide paid sick leave and expanded FMLA protections, effective April 2. The Act provides two separate...


Eighteen Preti Flaherty Attorneys Selected as Chambers USA Leaders in Their Field

Eighteen Preti Flaherty attorneys and five practice groups have been selected for inclusion in the 2020 Chambers USA Guide to America's Leading Lawyers for Business , the highly regarded directory of leading attorneys and...


Preti Flaherty COVID-19 Resources

In response to the ongoing COVID-19 pandemic, Preti Flaherty's attorneys have maintained a constant stream of the most up-to-date information and resources for our clients, business partners, and others struggling to navigate these complex...


Alert: COVID-19 Update for ME and NH Employers

As the landscape of the COVID-19 global pandemic continues to evolve, employers across the country are looking for guidance on how to reduce the impacts on their businesses and their employees. Yesterday, the Maine...


DOL Provides Guidance on Exemption from Paid Leave for Small Businesses

The FFCRA requires certain employers to provide paid sick leave and expanded FMLA benefits due to COVID-19 but provides that businesses with fewer than 50 employees may be exempt if the obligation would jeopardize...


Return to Work Protocol for Workers Following an Absence Due to COVID-19

This protocol outlines steps to consider when returning an employee or contractor to work after a COVID-19-related absence and applies to situations in which the person: (1) had a positive test result or (2...


COVID-19 and 401(k) Plans—Ability to Suspend Employer Contributions

As a result of the COVID-19 epidemic, many employers are looking to conserve cash in order to continue operations.  Some may wonder whether they can suspend employer contributions to 401(k) plans. Suspension of contributions...


Update on Families First Coronavirus Response Bill—Payroll Taxes and Tax Credits

As discussed in our recent update , the Families First Coronavirus Response Act (the “Act”), which is expected to take effect on taking effect April 1, 2020 according to recent Department of Labor guidance...