• Menu
  • Skip to left header navigation
  • Skip to right header navigation
  • Skip to primary navigation
  • Skip to secondary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

Contact Us (317) 692-9000

  • Facebook
  • Twitter
  • LinkedIn

Directions

Kroger Gardis Regas, LLP

Kroger Gardis & Regas, LLP

  • Firm
    • About Us
    • History
    • KGR in Our Community
    • TAGLaw®
  • Professionals
  • Practice Areas
  • Information
    • Blog
    • Doing Business in Indiana: A Reference Guide
    • Representing Buyers and Sellers in Acquisitions of Privately Held Companies
    • Receiverships & Class Actions
  • Legal Lessons
    • Courses
    • Login
    • Account
  • News
  • Careers
  • Contact
  • Search
  • Firm
    • About Us
    • History
    • KGR in Our Community
    • TAGLaw®
  • Professionals
  • Practice Areas
  • Information
    • Blog
    • Doing Business in Indiana: A Reference Guide
    • Representing Buyers and Sellers in Acquisitions of Privately Held Companies
    • Receiverships & Class Actions
  • Legal Lessons
    • Courses
    • Login
    • Account
  • News
  • Careers
  • Contact
  • Search
You are here: Home / Employment Law / 11th Hour Federal Court Injunction Blocks New FLSA Overtime Rules

11th Hour Federal Court Injunction Blocks New FLSA Overtime Rules

November 23, 2016 //  by Brian Bosma

[vc_row][vc_column width=”1/4″][vc_single_image image=”17588″ img_size=”full” add_caption=”yes”][/vc_column][vc_column width=”3/4″][vc_single_image image=”18239″ img_size=”full” add_caption=”yes”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]As we earlier reported, new Fair Labor Standards Act overtime rules proposed by the Department of Labor that would more than double the salary thresholds for “white collar” employees were set to go into effect on December 1 of this year.

However, at the request of more than 20 State Attorneys General, Federal Judge Amos Mazzant of the Eastern District of Texas, an Obama appointee, granted a nationwide preliminary injunction against the Department’s proposed rule, finding that the AG plaintiffs had shown both a likelihood of success on the merits and irreparable harm in the absence of the injunction.

In his opinion, Judge Mazzant found that Congress unambiguously expressed its intent for employees doing “bona fide executive, administrative, and professional capacity” duties to be “exempt from overtime,” and stated that the Department had exceeded its authority by adopting a “salary test” that categorically excluded a substantial number of workers who met those requirements.

Although the Judge noted that the ruling “only delay[s] the regulation’s implementation,”it is unlikely that the District Court will reverse course or the Court of Appeals will overturn the injunction prior to President-elect Trump’s inauguration. While it is unknown what effect the Trump presidency will have on the ruling or the regulation, Trump has stated that the proposed overtime rule was the type of “burdensome” business regulation he would seek to roll back as President. Accordingly, even if the Department appeals the decision, a Trump administration may decide to drop the appeal or direct the Department to issue new, less burdensome rules.
In the meantime, employers may face a difficult situation. If employers have not already increased salaries or converted employees to non-exempt positions, they may postpone these changes indefinitely. Employers who have already made changes, or have informed their employees of upcoming changes, should seek legal guidance prior to communicating the ruling to their employees or making any rollbacks in salaries or positions. Not only may the inunction have an effect on employee morale, but there could also be potential for breach of contract claims.

The attorneys of Kroger Gardis & Regas stand ready to answer any questions you may have on this surprise development. We will continue to monitor the situation and provide updates as they become available.[/vc_column_text][/vc_column][/vc_row]

Category: Blog, Corporate Law, Employment LawTag: Brian Bosma

Previous Post: « Documenting and follow-up for the investigation
Next Post: Noncompetes – A Breach Does Not Entitle a Company to Increase the Length of an Injunction »

Primary Sidebar

If you are interested in our services please fill out the form below.

    Your Name (required)

    Your Email (required)

    Phone (required)

    Subject

    Your Message

    RECENT POSTS

    Practical Legal Issues regarding Vaping and Schools

    The tobacco use intervention strategies of the past may have low …

    The Federal Trade Commission Announced a Ban on Non-Compete Agreements: What Does That Mean for Your Business?

    We won’t bury the lede: it could be huge, but it’s also probably …

    2 New Attorneys, 1 Paralegal Join KGR

    KGR is thrilled to start the New Year with two new attorneys Wes …

    KGR Obtains Preliminary Injunction Against City of Bloomington in Free Speech Case

    Turning Point USA (TPUSA) and its local chapter on the Indiana …

    KGR Attorneys File Lawsuit Against USA Track & Field to Advance Athlete Health & Safety

    KGR’s Sports and Entertainment Law Team, led by KGR Partner Bill …

    Footer

    Indianapolis Office

    Kroger, Gardis & Regas, LLP

    111 Monument Circle, Suite 900 Indianapolis, IN 46204

    (317) 692-9000
    (317) 264-6832
    Directions

    Connect with us!

    • Facebook
    • LinkedIn
    • Twitter

    Newsletter

    Select list(s) to subscribe to


    By submitting this form, you are consenting to receive marketing emails from: Kroger, Gardis & Regas, LLP, 111 Monument Circle, Indianapolis, IN, 46204, http://www.kgrlaw.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

    Copyright © 2023 · Kroger, Gardis & Regas, LLP · Log in