Federal Court in Texas Halts Implementation of New FLSA Overtime Rules

11.28.2016

The changes to the minimum salary threshold for exempt employees that were to take effect on December 1, 2016 have been halted by a federal judge in Texas.  The judge found that the new overtime rules improperly created a salary test to determine which employees were exempt, instead of a duties test. 

Keep in mind that this does not mean that the new rules will not ultimately go into effect at a later date, but only that the implementation of the rules has been paused for the time being.  No final decision will be entered for some time, and certainly not until after the new president has taken office. 

While the salary increases have been halted on a national level, New York State is still implementing its own increases to the salary threshold for exempt employees.  For Monroe and the surrounding counties, an exempt employee must be paid at least $727.50 per week as of 12/31/2016.  The salary thresholds will continue to increase as follows:

  • $780.00 per week as of 12/31/17
  • $832.00 per week as of 12/31/18
  • $885.00 per week as of 12/31/19
  • $937.50 per week as of 12/31/20

If you have employees in New York City or Nassau, Suffolk, or Westchester counties, the salary thresholds are higher, and you should consult with counsel to ensure that you are in compliance with New York State law.