Salary Threshold Change Stopped

By Bill Wright

The U.S. District Court for the Eastern District of Texas has temporarily enjoined the Department of Labor’s new salary threshold test for executive, administrative and professional employees. The court found that the terms – executive, administrative and professional – had functional meanings but did not imply any particular salary or status. The court also found that the new threshold — $913 a week – was so high that it effectively took over the duties test, substituting status for function. Consequently, the court found the plaintiffs had shown a likelihood of success on the merits; the new regulation was likely to be contrary to the Fair Labor Standards Act.

The result is that, as of this moment, employers nationwide do not have to comply with the new regulation on December 1, 2016. Watch for a fast run to the court of appeals!

Nevada et al. v. US DOL, Civil Action No. 4:16-CV-00731 (E.D. Tex. Nov. 22, 2016).