November 28, 2016
Injunction issued in FLSA overtime rule litigation
Overview of the preliminary injunction
The U.S. Department of Labor's overtime rule would have raised the Fair Labor Standards Act's (FLSA's) salary threshold for exemption from overtime pay from $23,660 to $47,476. In anticipation of the effective date of the new rule, which was to be Dec. 1, 2016, Human Capital Services has been preparing to implement changes at K-State to reflect the increase in the salary threshold. Affected employees have been notified regarding changes to their FLSA exemption status, which became effective as of the Nov. 20 pay period.
On Nov. 22, a federal court in Texas granted a nationwide preliminary injunction in a suit brought against the Department of Labor, finding that the DOL was without Congressional authority to implement this new rule. The effect of this ruling is that the new rule will not be enforced, at least on a temporary basis. This ruling is subject to appeal by the DOL.
Impact to K-State
With the news of the preliminary injunction, HCS continues to work with decision-makers within the university to review this latest development and consider options for how to proceed.
Employees who have already transitioned from exempt to non-exempt status as of Nov. 20 will remain non-exempt while the university considers options. Those employees should continue to record all hours worked as previously directed.