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Employment Law, Benefits & Compensation

Client Alert: Changes to Overtime Rule Will NOT Go into Effect December 1, 2016

Yesterday a Federal Court in Texas entered a nationwide injunction which put a hold on the new Fair Labor Standards Act reforms that would have taken effect on December 1, 2016. As a reminder, the new rule would have increased the salary threshold required for exempt employees from $23,660 to $47,476 per year. Employees not at this salary threshold, regardless of their duties and responsibilities, would either need to be reclassified as non-exempt or have their salary level increased to $47,476 to maintain exempt status on December 1, 2016.  

The injunction is not permanent so the future of the proposed changes is uncertain. But for now, employers do not have to comply with the new salary threshold for exempt employees by December 1, 2016. If you have any questions, please contact your Hutchison attorney or Holly Hammer or Frances-Ann Criffield in Hutchison's employment law group to discuss this issue further.


This Alert is provided for informational purposes only and is not intended to be, nor should it be construed as, legal advice on any specific matter, nor does it represent any undertaking to keep recipients advised of all relevant legal developments. This Alert does not create or constitute an invitation to create an attorney-client relationship, nor should it be construed as an advertisement or solicitation for legal services. This material may be considered Attorney Advertising in some states. Prior results do not guarantee a similar outcome.

 © 2016 Hutchison PLLC

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