Employers, including those in the energy industry, should note that on November 22, a judge in the US District Court for the Eastern District of Texas issued a preliminary injunction halting on a national basis all but a few parts of the US Department of Labor’s (DOL’s) salary basis requirement for the primary overtime exemptions that were scheduled to take effect December 1. For as long as this injunction remains in effect, the old salary basis test ($455 per week) for the white collar exemption remains in effect.
Employers need not increase employees’ salaries on December 1 to continue to qualify for the executive, administrative, professional, and computer professional exemptions. However, employers should be ready to comply with the new regulations on very short notice because they could take effect immediately in the event that the injunction is lifted at any time after December 1. Furthermore, the court’s ruling has no effect on state and local law overtime exemptions, so employers will need to continue to comply with all requirements under those laws, some of which already have in place salary levels higher than the existing federal level. Read our full LawFlash for more details: Texas Court Enjoins Most of DOL's New Overtime Regulations.