Judge Amos Mazzant of the United States District Court for the Eastern District of Texas issued a nationwide injunction late last week blocking the Department of Labor from implementing its new salary tests for overtime exemptions.
The Department of Labor had issued a rule that – effective December 1 – effectively doubled the minimum salary threshold for administrative, executive, and professional employees to $47,476 annually, or $913 weekly.
Technically, this injunction excuses everyone – for now – from complying with those higher salary tests. But the injunction comes too late to do much good for most employers. Where employees have already been told of their new status, it makes little sense for employers to reverse field on short notice.
Judge Mazzant held that Congress intended the white collar exemptions to apply to individuals doing white collar work, without reference to a minimum salary level. Thus, until revised by Judge Mazzant or on appeal, the requisite salary for those exemptions officially remains $23,660 per year or $455 per week.
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