The Department of Labor’s controversial rule that required “white collar” employees to be paid at least $47,476 per year in order to be exempt from the Fair Labor Standards Act will NOT go into effect on December 1, 2016 as planned (we wrote about the rule here).  A Texas federal judge on Tuesday agreed with 21 states that a nationwide preliminary injunction was necessary to prevent irreparable harm to states and employers if the rule went into effect on December 1.

What does this mean for employers now? It means that for now, the rule will not go into effect on December 1.  But the rule could nonetheless be ultimately upheld, and this is not the final word on the issue.  If you have already announced changes to employee wages or work schedules in preparation to comply with the rule on December 1, you may not want to rescind those changes.  Obviously, before you reverse course it would be prudent to consider employee morale – particularly if you have already advised an employee that she is getting a raise come December 1.  If you are scurrying about to complete your compliance audit and make necessary adjustments, you have some breathing room, at least for now.

We’ll keep you posted on any further developments.

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Photo of Ryan Kunkel Ryan Kunkel

Ryan Kunkel, an associate in Stoel Rives’ Labor & Employment group, helps employers resolve employment-related disputes in litigation and counsels clients to help prevent those disputes in the first place. His practice also includes helping management resolve complex labor disputes, including organizing…

Ryan Kunkel, an associate in Stoel Rives’ Labor & Employment group, helps employers resolve employment-related disputes in litigation and counsels clients to help prevent those disputes in the first place. His practice also includes helping management resolve complex labor disputes, including organizing drives, NLRB proceedings, and work stoppages.

Click here for Ryan Kunkel’s full bio.

Photo of Brenda Baumgart Brenda Baumgart

Brenda Baumgart is practice group leader for Stoel Rives’ Labor & Employment group and devotes her practice to assisting companies of all sizes navigate the complexities of employment and labor laws. She partners with clients to provide day-to-day advice and compliance counseling, assisting…

Brenda Baumgart is practice group leader for Stoel Rives’ Labor & Employment group and devotes her practice to assisting companies of all sizes navigate the complexities of employment and labor laws. She partners with clients to provide day-to-day advice and compliance counseling, assisting them with finding practical solutions while minimizing litigation risk. Her litigation and trial work includes defending employers in federal and state courts in all areas of employment law (including single plaintiff cases and class/collective actions), handling appeals exclusively on matters of labor and employment law before appellate courts, including the Oregon Court of Appeals, the Oregon Supreme Court, the Ninth Circuit, the Eighth Circuit, and the Fifth Circuit, and administrative proceedings before various governmental agencies. Brenda also has a strong traditional labor practice and represents clients in labor arbitrations and matters before the National Labor Relations Board (NLRB). She conducts internal workplace investigations for private and public sector clients.

Click here for Brenda Baumgart’s full bio.

Photo of Karen O'Connor Karen O'Connor

Karen O’Connor is a partner in the firm’s Labor & Employment group whose practice includes counseling and litigation on complex employment issues including leave laws, workplace harassment and discrimination, discipline and documentation, and drug and alcohol issues. She represents clients before Oregon and…

Karen O’Connor is a partner in the firm’s Labor & Employment group whose practice includes counseling and litigation on complex employment issues including leave laws, workplace harassment and discrimination, discipline and documentation, and drug and alcohol issues. She represents clients before Oregon and Washington state and federal courts and in administrative proceedings. Karen co-teaches in the human resources program at Portland State University and is a frequent speaker in the community.

Click here for Karen O’Connor’s full bio.