Federal Court Stays New Overtime Laws

One of the biggest concerns I was hearing from AAN members over the past year – certainly the biggest business concern – involved the proposed changes to the Fair Labor Standards Act regulations affecting the definition of “exempt” vs. “nonexempt” employees for purposes of overtime pay. Fran Zankowski and I presented a webinar about the changes, it was a subject of discussion at the Legal Hotline Live sessions in Salt Lake, San Francisco and Austin, I wrote 2 different articles about it and I’ve received numerous questions about it through the Legal Hotline, all in anticipation of the big changes you’d have to make before December 1.

Well, put those changes on ice. A federal court issued an injunction preventing implementation of the rules until it has more time to consider their legality. They will NOT go into effect on December 1. As I discuss in this post on my law firm’s “Commlawblog,” they may still go into effect in the future, but that is also in question given the presidential transition.

Something to be thankful for, at least for the time being. Please let me know if you have any questions.