Over the past few months, our law firm has discussed the new FLSA overtime rules that were scheduled to go into effect on December 1, 2016, increasing the salary thresholds for “white collar” exemptions and also providing for automatic increases for those thresholds.
However, in September 2016, a group of 21 states (and several industries) filed a lawsuit in the Eastern District of Texas to block the Final Rule. On November 22, that Court entered a preliminary injunction delaying implementation of the Final Rule pending further legal proceedings. The injunction is nationwide in scope, and even applies in states that did not join the lawsuit. As a result of the Court's decision, the December 1 implementation date for the Final Rule is postponed in all jurisdictions (including South Dakota) and employers are not required to comply with the requirements of the Final Rule until further notice.
The Court’s ruling, along with likely changes at the Department of Labor, certainly casts doubt on the Final Rule's future. However, the Court’s injunction does not permanently void the Final Rule. Instead, the ruling only acts as a temporary postponement of its effective date. Therefore, school districts are cautioned to remain prepared and ready to comply with the Final Rule until clear information instructs otherwise.