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Payroll Today

Court suspends DOL’s salary-level regs

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Alice Gilman

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in Payroll Today

On Nov. 22, 2016, a federal trial court in Texas granted a nationwide preliminary injunction, which prevents the Department of Labor’s (DOL) salary-level regulations from going into effect on Dec. 1, 2016. The court ruled that the DOL exceeded its authority in issuing those regulations. Twenty-one states and numerous business groups sued the DOL earlier this fall to stop the regulations from going into effect. (State of Nevada v. U.S. Dep’t of Labor, No. 4:16-CV-00731-ALM, D.C. E. Tex., 2016)

Last May, the DOL issued final regulations that raise the guaranteed weekly salary an employee must earn to be considered exempt to $913 a week, from $455. These regs also included a provision that automatically updated the salary level every three years, beginning in 2020. This provision is invalidated, as well.

Court’s decision

A preliminary injunction is just that—preliminary. Courts grant preliminary injunctions when plaintiffs pres...(register to read more)

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