COURT ENJOINS IMPLEMENTATION OF NEW

FEDERAL SALARY REQUIREMENT FOR

EXEMPT EMPLOYEE STATUS
Today, U.S. District Judge Amos Mazzant issued a nationwide injunction that
blocked implementation of the new federal salary standard for employees to
qualify as exempt under the salary basis test. This means that employers do not
have to pay exempt employees a minimum salary of $47, 476 as of December 1 to
retain exempt status. Instead, for California employers, the minimum salary
requirement for exempt employees will rise to $43,680 effective January 1, 2017
as a result of the minimum wage increasing to $10.50 per hour.
Judge Mazzant, who sits on the bench for the District Court for the Eastern
District of Texas, found that public interest is best service by the [nationwide]
injunction. He further held that the states that sued the Department of Labor
showed a likelihood of success in their challenge to the salary rule, and that
irreparable harm would be suffered if the rule went into effect and was later
overturned. The State Plaintiffs have established a prima facie case that the
Departments salary level under the Final Rule and the automatic updating
mechanism are without statutory authority.
For more information or compliance assistance, please contact:
Jeff Dinkin
(805) 730-6820
(949) 725-4098

jdinkin@sycr.com

Nicole Zajack
(424) 214-7017
nzajack@sycr.com