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.

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