Fair Labor Standards Act: Temporary Injunction

Temporary Injunction Issued against
Department of Labor Overtime Regulations

Check In Michigan joins AH&LA and thousands of lodging and tourism business in applauding the federal court injunction freezing implementation of the Department of Labor’s controversial overtime rules.

“This is a strong step in the right direction,” said Check In Michigan President/CEO Deanna Richeson, “but it’s important for our members to remember that the injunction could be lifted as quickly as it was imposed.  We will continue to support  AH&LA and other like-minded organizations in efforts towards a permanent administrative or legislative solution to this costly regulation.”

Check In Michigan will keep you informed as we watch this closely in the weeks and months ahead.

On November 26, 2016, the United States District Court for the Eastern District of Texas issued a temporary injunction against the new Department of Labor (“DOL”) overtime regulations set to go into effect December 1, 2016. The injunction follows court arguments heard on November 16 in a lawsuit brought by 21 states alleging the new DOL’s rules exceeds the DOL’s authority and violated administrative law requirements.  The new regulations propose to raise the salary threshold for exempt employees from $23,660 to $47,476 and provide for an automatic increase to the threshold every three years.

Although the regulations will not go into effect on December 1, employers should understand that this is a temporary injunction and that the injunction could be lifted or changed. In fact, the U.S. Labor Department filed a notice of appeal to the U.S. Court of Appeals for the Fifth Circuit, last Thursday (December 1), the same day the administration’s rule had been set to take effect nationwide.

Although there may be legislation or other administrative efforts to address the DOL’s regulations by the Trump administration next year, those changes will take time. Therefore, Employers need to monitor this situation regularly to ensure they are in compliance with the law.
If you have any questions, please contact a member of our Labor and Employment Practice team:
Frank A. Mamat  fmamat@fosterswift.com
Michael R. Blum  mblum@fosterswift.com  


Member Resources to Prepare for the Rule Changes to the the Fair Labor Standards Act (FLSA)

Are all of your salaried workers earning at least $47,476 annually?  If not, as of December 1, 2016 you may be out of compliance with the Fair Labor Standards Act (FLSA).  In May of this year, the Department of Labor announced key changes to the FLSA that will significantly impact employers’ overtime costs and bottom line.  Will you be one of those affected?

Free Worksheet to Determine if You Need to Comply with the New Laws

Join our email list to gain access to a free worksheet that will help you determine whether or not you have to comply with the Fair Labor Standards Act.