Last week, a federal judge ruled with 21 states to issue an injunction on the new Fair Labor Standards Act (“FLSA”) Overtime Regulations, which were due to come into effect this Thursday. Earlier this year, the Department of Labor updated this regulation to federally require the minimum salary level for exempt employees (those who do not qualify for overtime pay) to be $913 per week, or $47,476 annually.
This new regulation is now temporarily on-hold. Texas District Judge Amos L. Mazzant granted the injunction on the ground that the rule could significantly affect state budgets, cause layoffs and disrupt governmental functions.
While the injunction is temporary, and the rules may still be implemented at a later date, there is some doubt on whether the updates will be implemented under the new presidential administration.
These new rules would have had significant implications for non-profits. You may have already communicated with your staff about upcoming changes to pay and working hours. Or you may have already implemented the change and distributed time sheets. As these rules are nationally on-hold, you have the choice to follow these regulations or not.
We know that you have already had to make difficult decisions to comply with this law by Thursday and that this new change may not affect you greatly, but we wanted you to know that we support you, understand and will keep you informed if we learn anything.