A federal district court Judge has granted a Nationwide preliminary injunctionagainst the much-discussed new FLSA overtime rules, just eight days before they were scheduled to come into effect.
Many employers have already raised salaries or informed exempt employees that they would receive a pay increase to more than $47,476, effective December 1. Other employers have informed exempt employees whose salaries are under the threshold that they will now be considered hourly employees and eligible for overtime.
For the time being, employers no longer have an obligation under the FLSA to make such changes to pay practices. However, from an employee morale perspective, it could be very difficult for employers that have announced a raise to renege on that promise. Employers who have informed employees of changes and now plan to rescind those changes as a result of the preliminary injunction should seek legal advice.
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