A Federal District Court in Texas just issued an injunction prohibiting the United States Department of Labor from enacting its new rule increasing the salary base to be used for executive, administrative or professional employees to qualify as "exempt employees" under the Fair Labor Standards Act.
What does this mean? As of right now, the Department of Labor cannot enforce its rule. So, if you were thinking about implementing changes that would change your entire wage structure based on the Department of Labor's rule change, hold off and see how this plays out.
The injunction is temporary - but the crux of the argument is this: numerous states filed suit in Federal Court claiming that the Department of Labor overstepped its authority in rule making given to it by Congress by enacting regulations that are contrary to the law. Specifically, the Plaintiffs claim that the regulation increasing the salary requirement essentially supplants the duties test - and if that is to be the law, that change must be made by Congress and not the Department of Labor. Because the regulation was to become mandatory on December 1, 2016, the Court granted an injunction and told the Department of Labor that it CANNOT implement its rule change until the matter is fully heard in the Court.
See State of Nevada, et al v. United States Department of Labor et. al, United States District Court, Easter District of Texas, Sherman Division, Case 4:16-cv-00731-ALM, Document 60, Filed 11/22/16.