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WORKPLACE LAW ALERT BREAKING NEWS: Texas Court Grants Nationwide Injunction Blocking FLSA Overtime Changes

By: Maureen Rouse-Ayoub and Aaron Graves

11/22/16

NOVEMBER 22, 2016 - Late today, a Texas Federal District Court granted a nationwide injunction blocking the new DOL rule designed to increase the minimum weekly salary requirement for exempt employees to $913. The rule would have gone into effect on December 1, 2016, and impacted an estimated 4.2 million employees.

As a result, employers need NOT make changes to comply with the new rule.

The Court concluded that the “State Plaintiffs” (21 states including Michigan and various employer groups) established a prima facie case that the “Department’s salary level under the Final Rule and the automatic updating mechanism are without statutory authority.” State of Nevada, ET AL. v. U.S. Department of Labor, ET. AL., Case No. 4:16 –cv- 00731, *19 (U.S. District Court, E.D. Texas, November 22, 2016).

Bodman can provide guidance on this new development. Contact a member of Bodman's Workplace Law Practice Group if you need assistance.