- If the Fifth Circuit confirms that the DOL has the authority to set an exempt salary level requirement and lifts the injunction, the rule as currently written (with the $913 weekly salary amount) would not likely become effective until the DOL revises the rule.
- If the Fifth Circuit confirms that the DOL has the authority to set a salary level requirement but leaves the injunction in place, the DOL will most likely have time to update the rule, giving employers time to comply with the new requirements.
- If the Fifth Circuit affirms the lower court ruling and concludes that the DOL does not have statutory authority to require a minimum exempt employee salary, the status of the new rule will be uncertain. The DOL may choose to appeal to the U.S. Supreme Court, which would mean that the uncertainty about the rule would continue for some time.
At this point, the final outcome for the 2016 overtime rule and its implications for employer staffing and pay decisions remain up in the air. It will most likely be some time before employers will know what they need to do to comply with FLSA rules.
Dorraine Larison concentrates her practice in the areas of bankruptcy law, debtor/creditor law, and employment law. She has extensive experience in the areas of commercial financing, creditors’ rights, and creditor ...
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