Michael S. Kun, a Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Los Angeles office, authored an article in the Employee Relations Law Journal, titled “If Injunction is Reversed, Compliance with the New DOL Overtime Exemption Rule Would Create Unexpected Challenges for Employers.”

Following is an excerpt:

The U.S. Department of Labor (DOL) announced its final rule to increase the minimum salary for white-collar exemptions, effective December l, 2016. Only days before the new rule was set to go into effect, a United States district court judge in the Eastern District of Texas enjoined the implementation of the rule, concluding that the DOL had overstepped its statutory authority.

The DOL has appealed the decision to the Fifth Circuit Court of Appeals. If the appeal is successful and the injunction reversed, employers will need to decide how to address those otherwise exempt employees whose current salaries would not satisfy the new rule, by either increasing their salaries or converting them to nonexempt status.

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