Ditchmen • NUCA of Florida Ditchmen • December 2016 | Page 8

S
K
C
O
L
FEDERAL COURT B
IMPLEMENTATION OF OVERTIME RULE CHANGES
On November 22, a
Federal District Court
issued a preliminary
injunction blocking the
Department of Labor
from implementing the
new overtime rules set to
take effect on December
1, 2016. Specifically, the
Department’s “Final Rules”
included changes to the
Fair Labor Standards
Act (FLSA) by increasing
the minimum earnings
threshold for employees
to qualify for overtime
exemptions from $455
per week to $913 per
week. In his ruling, Judge
Mazzant stated “that the
Department [of Labor’s]
salary level under the Final
Rule and the automatic
updating mechanism are
without authority” and
enjoined the Department

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DITCHMEN • DECEMBER 2016

on a nationwide basis
from implementing and
enforcing the new rules.
While the District Court’s
ruling suggests that
employers do not need
to comply by December
1, 2016, the legal fight
is not over and there
could be some risk to an
employer who does not
comply. The Court issued
a preliminary injunction,
meaning that there will
be further proceedings in
which the Court could alter
its conclusions. Moreover,
the Department of Labor
already indicated it intends
to appeal the District Court
ruling. There is a split of
legal authority in federal
courts on whether the
existence of the preliminary
injunction precludes

any liability between the
December 1, 2016, effective
date and the date the
Court of Appeals issues
its decision. Some federal
courts have held that an
employer cannot be liable
for non-compliance while
an injunction is pending,
while others (including at
least one District Court
in New York) have held
the opposite. Employers
need to consult with their
legal counsel who can
help them assess the
risk associated with their
decision.

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