On December 1st, the date the Fair Labor Standards Act (FLSA) Overtime threshold changes were originally intended to go into effect, the Department of Labor (DOL) instead filed an appeal regarding the preliminary injunction that blocked the threshold’s implementation. This was necessary because, in a down-to-the-wire decision, a federal judge in Texas granted an injunction on November 22nd, blocking the regulations and throwing businesses into a state of limbo regarding how best to proceed.
Regardless of the DOL’s request for a ruling on the appeal to be completed quickly, it is uncertain whether or not the appeal will be resolved prior the new administration taking office on January 20th. While no one knows for sure how the Trump administration would handle this issue, there are multiple possible scenarios including withdrawing the appeal, adjusting the threshold, or passing legislation to abolish the regulation entirely.
We are advising clients, then, to keep this on their radar and maintain an implementation plan in case the ruling is pushed through, but we don’t recommend moving forward until more information about the direction this is heading is available.