Los Angeles Office Location
Hennig Ruiz Law Firm
Not sure if you have a legal case? Call us to talk to a lawyer:
Free Consultations
424-394-0464
One Of The Most Successful Workers' Rights Trial Law Firms In California

Update on New Federal Overtime Rules: FLSA Overtime Exemption Rule Revision Blocked

FLSA Overtime Exemption Rule Revision Blocked by Federal Judge

Photo Credit: Leo Reynolds Flickr via Compfight cc

Many employees had been looking forward to new revisions in the Department of Labor's overtime exemption rule, which was set to take effect on December 1, 2016. These revisions would have doubled the salary requirement for white collar employees who were eligible for overtime pay.

Four million Americans would have been eligible for overtime compensation whenever they worked above and beyond their normal forty-hour work week. However, the revision was blocked by a federal judge in Texas before the rule could take effect; this means that there will be no change to the overtime exemption rule after all.

The Current Overtime Exemption Law

The current overtime exemption law requires that certain white collar employees who are salary employees and make more than $23,660 per year are exempt from earning overtime pay. White collar employees include workers who hold a position that is executive, administrative or professional in nature. Any white collar worker who works more than forty hours in a week and earns less than the set amount in salary compensation is to be paid a rate that is one and a half times as much as the regular pay rate for each hour above and beyond the required forty hours a week. There is also a high-earning employee exemption where high-earning employees must make less than $100,000 dollars annually and perform at least one "qualifying task" in order to be eligible for overtime pay.

What the FLSA Overtime Revision Would Have Meant For Employees

The revision to the overtime exemption law would have raised the salary requirement for white collar workers to $47,476, and to $134,004 for highly-compensated employees, making more employees eligible for overtime compensation. The revision to the rule would have required that the newly identified salary levels be subject to automatic adjustments every three years to compensate for inflation. In fact, the whole purpose of the revision to the overtime exemption law was meant to address the issue of inflation, which has long been overlooked with regard to the exemption law. The blocked revision was meant to help boost workers' wages, and the intended consequence of changing the law was to provide a much-needed jolt to slow-growing incomes in the United States.

Federal Judge Blocks Overtime Exemption Rule Revision Days Before Effect

On December 1 2016, circumstances could have become very different for workers across the country with the implementation of the revised law. However, during Thanksgiving week, U.S. District Judge Amos Mazzant III blocked the law revisions from taking effect by issuing a preliminary injunction. The judge issued the injunction amidst concerns that the revision would increase government costs in individual states, increase business salary expenditures, and increase the instances of eventual employee layoffs due to increased costs. This ruling is only preliminary in nature, which means that the revision could possibly be reinstated.

Overtime compensation issues affect many employees in California. If you are concerned that you are not receiving overtime pay, please consult with an experienced California employment attorney at Hennig Ruiz for a free consultation today.

No Comments

Leave a comment
Comment Information
  • Super lawyers
  • California Employment Lawyers Association
  • Consumer Attorneys Association of Los Angeles

What Our Clients Say About Us

  1. I needed great attorneys in a short period of time, it was an emergency situation. Some research led me to the Hennig-Ruiz law firm. We spoke on the phone and they had me come into the office and started on my case immediately. They got me exactly what I wanted and did it in the shortest amount of time possible. They were caring, fair and extremely good at what they do. I definitely would recommend them to anyone. -Scott Rooney

  2. If you are looking for legal representation I would suggest for you to consider Hennig Ruiz Law Firm. Put succinctly, their legal team was intelligent, hard working, responsive, and very knowledgeable throughout our time working together. While I of course cannot divulge details about the assistance that the firm provided for me, I can and will say that their representation was pivotal and changed my life for the better beyond words... -Shane Guglielmo

  3. I went to this firm to have a separation letter reviewed and met a young lawyer named Janet Hong. She was extremely friendly, professional, thorough and quick. She reviewed the documentation promptly and gave me actionable advice. I was able to resolve everything quickly. I would not hesitate to recommend Janet to anyone seeking legal services. -Brendan Hagerty

Schedule a Free Consultation

Ready To Start Protecting Your Rights? Call 424-394-0464

Not Sure Whether You Need Lawyer?

Answer a few questions to see whether you have a case.
Get Started Here

Office Location

Hennig Ruiz Law Firm
1925 Century Park East
Suite 1960
Los Angeles, CA 90067

Toll Free: 800-260-6542
Phone: 424-394-0464
Fax: 310-843-9150
Map & Directions

Free Consultations

Contact Us