Federal Overtime Rules On Hold For Now; New York Proposed Increase Remains

Amy L. Varel
Nov 29, 2016

Last week, a federal judge in Texas issued a preliminary injunction enjoining the U.S. Department of Labor from implementing and enforcing the Final Overtime Rule issued last May. This means that, at least for now, employers will not need to raise the minimum salary level to $913 per week ($47,476 per year) by December 1, 2016 in order to qualify for an exemption under the federal Fair Labor Standards Act.

Other than the increased salary requirement which is now on hold, employers must continue to comply with the overtime provisions of the FLSA, as well as the current minimum salary requirement of $675 per week for exempt employees in New York State. The New York State Department of Labor also recently proposed an increase in the minimum salary threshold for exempt employees in New York State that, if finalized, will increase the minimum salary requirement to $727.50 per week for Upstate New York employers effective December 31, 2016, with annual increases that will ultimately set the minimum salary requirement in Upstate New York to $937.50 per week by December 31, 2020.

For assistance with these matters, please contact a member of our Employment practice.

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Federal Overtime Rules On Hold For Now; New York Proposed Increase Remains