On November 22, 2016 a federal judge in Texas issued a preliminary injunction, in effect blocking the implementation of the new FLSA rules that were set to start on December 1, 2016.

What does this mean for your business?

  • The existing FLSA ruling will still be in effect, so employees who were correctly classified before are still correctly classified now.
  • If you’ve already made changes in advance of the 12/1 effective date, it’s probably best to keep them in place. Particularly if you’ve made salary changes, it would be difficult to decrease an employee’s salary now in response to the changes.
  • If you’re about to implement changes, a wait and see approach is prudent. This is a temporary hold, and changes of some form could happen once a final ruling is issued, so any preparation you’ve already done may still be useful in the future.

What should you do next?

The duties test of the FLSA ruling is not changing, so if you haven’t done it already now would be a good time to verify that your employees are correctly classified based on their work duties.