On November 22, 2016, a Federal Judge in Texas issued an injunction in a lawsuit filed by 21 states and various business organizations challenging the new DOL regulations relating to the “white collar exemption” (the “Rule”), temporarily halting the implementation of the Rule.
The District Court held the Rule is contrary to the statutory text of the Fair Labor Standards Act (“FLSA”) and to Congress’s intent. Although this injunction is only temporary, until further notice, dealers are not required to comply with the new Rule on December 1st.
However, the injunction only applies to the new Rule regarding the “white collar exemption”, meaning those employees qualifying as “executive”, “administrative” or “professional” as defined by the FLSA and its regulations. The injunction does not apply to other classification of employees (i.e. service technicians, salespeople, etc.) which have their own overtime exemption classification and tests to satisfy when determining whether the employee is exempt from overtime pay.
If you have any questions regarding this notice or any other employment related matters, please do not hesitate to contact a member of our Dealer Practice Group at 248-645-9300 or by email.
- Charles A. LeFevre, Chair, [email protected]
- Lawrence F. Raniszeski, [email protected]
- Michael J. O’Shaughnessy, [email protected]
- Eric R. Bowden, [email protected]
- Alycia Pallach Wesley, [email protected]
- Coriann Gastol, [email protected]
