US Department of Labor regulations that were scheduled to go into effect on December 1, 2016 have been tabled for now. This is the change in the salary test for exempt employees which basically doubled the salary that an employee would have to make in order to be considered exempt from overtime and other wage and hour provisions.
Today, a Federal judge issued a temporary injunction on behalf of 21 states and 50 business organizations on the basis that the new regulations would be overly burdensome to employers. This injunction temporarily blocks the regulation from becoming effective on December 1, 2016 pending a trial on the merits of the case.
Before we all celebrate, the injunction is temporary. It is unclear how the new Trump administration will act toward this issue but for now, the December 1st deadline is postponed indefinitely. Also, remember that California could issue it’s own regulations that could copy the Fed rules that are now on hold.
It is important to note that there are two tests regarding exemption: one is the salary test but the other is the duties test which very narrowly defines the kind of work, the level of authority and the amount of independent judgement an employee is allowed to exercise.
Stay tuned, but for now Happy Thanksgiving!