On November 22, a federal district court in Texas granted a preliminary injunction which will prevent the new FLSA overtime regulations from going into effect. Twenty-one states had filed a motion for a preliminary injunction, arguing that FLSA should not apply to the states and that the DOL had exceeded its statutory authority. The court held that it is clear that Congress intended for FLSA to apply to the states, but it agreed with the plaintiffs that the DOL had overstepped its authority. In its ruling, the court noted that the significant increase to the salary level test “creates essentially a de facto salary-only test,” which is impermissible. Nevada v. United States Department of Labor, 2016 WL 6879615 (E.D.Tex., 2016). The court granted a nationwide injunction, which means that no employers will be subject to the rule which otherwise was to go into effect December 1.
