New Overtime Rules Blocked

By SHLC on November 23, 2016 in Legal Update

Today a federal court issued an injunction to block the DOL’s new overtime regulations. The regulations, including the new salary threshold for overtime-exempt employees, were set to go into effect on December 1, 2016. The so-called “White Collar” exemption’s annual salary threshold was to increase from $23,660 to $47,476 under the now-blocked regulations. This SHLC Blog post previously detailed the changes that would be seen under these regulations.

The impending change in the law caused many employers to re-evaluate their employee classifications to determine whether it was worthwhile to increase compensation for exempt employees. The Nevada overtime exemptions track the federal exemptions – including salary requirements – and will remain unchanged in light of the federal court injunction.

Although the federal salary requirement will not increase, the annual salary requirement for California’s Executive, Administrative, and Professional exemptions will increase from $41,600 to $43,680 on January 1, 2017 and each year thereafter as the minimum wage increases. California employers should also be aware of California’s duties test, which is based on the amount of time exempt employees spend performing particular duties.

Employers are advised to contact qualified legal counsel with questions about paying overtime and overtime exemptions.