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Federal O/T Rule Stayed

Bryan Little, Farm Employers Labor Service
November 25, 2016

On Nov. 22, a federal judge issued a preliminary injunction blocking the pending implementation on Dec. 1 of a U.S. Department of Labor regulation that would have drastically increased the minimum salary level for a “white collar” employee to be exempt from minimum wage, overtime, and time-recordkeeping requirements under the federal Fair Labor Standards Act (FLSA).

The injunction, which applies nationwide, has no effect on state overtime provisions, including those under AB 1066. States may set their own minimum wage and overtime requirements. The FLSA does not preempt states from doing so.

Issued by a U.S. District Court in Texas in a case brought by 21 states (excluding California), the injunction indicates the court believes the challenge will likely result in the rule being permanently voided. However, the court's order stays the rule only temporarily; it could still be implemented later.