December 1, 2016 FLSA Minimum Exempt Salary Requirement Suspended
In a very rare moment for U.S. businesses, a judge has blocked the December 1, 2016 federal exempt employee increase to $47,892. Obama appointed U.S. District Judge Amos L. Mazzant’s preliminary conclusion was that the FLSA lacked the authority to raise the salary cap and that the Obama administration’s doubling of the salary cap was likely illegal due to eliminating the other tests in the law.
Although the administration can appeal Mazzant’s decision to the Firth Circuit Court of Appeals, which has the ability to hear an immediate appeal of Judge Mazzant’s preliminary injunction, whether or not it will happen will be the looming question.
What this means for U.S. employers…as it stands, the December 1, 2016 requirement to increase the salary of exempt employees under the Executive, Administrative and Professional exempt classes to no less than $47,892 has been suspended. Thus, states subject to FLSA standards (those not preempting it) will retain their annual minimum requirement of $23,660.
What this means for California employers…as it stands, on December 1, 2016, the minimum salary for exempt employees under the Executive, Administrative and Professional exempt classes will hold fast at $41,600. Keep in mind that even in light of this injunction, effective January 1, 2017, the minimum annual salary for an exempt employee under the Executive, Administrative and Professional classes will increase to $43,680.
The Business & People Strategy Consulting Group (www.bpscllc.com) will be closely monitoring this news and will keep you appraised of any changes, issues, or legal opinions as they arise.
To learn more about this topic and other key laws affecting California employers, please join us for our free webinar: 4th Annual California Labor Law Update on Wednesday December 14, 2016 at 10:30. This webinar fills up fast so be sure to reserve in your spot today by visiting our website (http://bpscllc.com/free-webinars.html) or clicking here.
Although the administration can appeal Mazzant’s decision to the Firth Circuit Court of Appeals, which has the ability to hear an immediate appeal of Judge Mazzant’s preliminary injunction, whether or not it will happen will be the looming question.
What this means for U.S. employers…as it stands, the December 1, 2016 requirement to increase the salary of exempt employees under the Executive, Administrative and Professional exempt classes to no less than $47,892 has been suspended. Thus, states subject to FLSA standards (those not preempting it) will retain their annual minimum requirement of $23,660.
What this means for California employers…as it stands, on December 1, 2016, the minimum salary for exempt employees under the Executive, Administrative and Professional exempt classes will hold fast at $41,600. Keep in mind that even in light of this injunction, effective January 1, 2017, the minimum annual salary for an exempt employee under the Executive, Administrative and Professional classes will increase to $43,680.
The Business & People Strategy Consulting Group (www.bpscllc.com) will be closely monitoring this news and will keep you appraised of any changes, issues, or legal opinions as they arise.
To learn more about this topic and other key laws affecting California employers, please join us for our free webinar: 4th Annual California Labor Law Update on Wednesday December 14, 2016 at 10:30. This webinar fills up fast so be sure to reserve in your spot today by visiting our website (http://bpscllc.com/free-webinars.html) or clicking here.