Perspectives: What’s Next For The FLSA Salary Litigation?
Our partners from Fisher Phillips stopped by this week to keep us all current on the legal maneuvering of the US Department of Labor between the federal District Court and the Fifth Circuit Court of Appeals over salary-related changes in the federal Fair Labor Standards Act’s “white collar” exemption requirements. Here’s the scoop:
The Old News:
The old news is that on November 22 federal District Judge Amos Mazzant preliminarily enjoined the U.S. Labor Department from “implementing or enforcing” the salary-related changes in the federal Fair Labor Standards Act’s “white collar” exemptions that were supposed to take effect on December 1, 2016.
What exactly did the lower court stop the USDOL from doing?
For now the Labor Department’s new regulations will not go into effect as scheduled, at least with respect to:
- Increasing the minimum salary threshold from $455 per week to $913 per week,
- The so-called 10% “credit”, and
- The tri-annual salary “update”
Somewhat unexpectedly, the USDOL requested that Judge Mazzant halt proceedings until the USDOL’s appeal of the December 1 injunction is ruled on by a higher court, in this case the Fifth Circuit Court of Appeals.
The New News:
The new news is that the USDOL’s request was denied because it failed to demonstrate to the court why such an extraordinary measure was warranted.
There is more yet to unfold.
Judge Mazzant has yet to rule on a pending motion by the business organizations and employer-advocacy groups who are challenging the changes. At the same time, expedited proceedings are moving forward in the Fifth Circuit U.S. Court of Appeals.
For now, FisherPhillips says that the situation is the same as it has been – the preliminary injunction is still in effect. However, it’s anyone’s guess where this is going to end up.
Read the full post here.
From our Partners at:
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FLSA Cheat Sheet
If the injunction is lifted, retroactive compliance could be required. Here’s what you need to know to cover your dealership’s bases.