Stroock Special Bulletin
"Recent Developments in U.S. Department of Labor Overtime Regulations and Impact for New York Employers"
In late November 2016, Judge Mazzant of the U.S. District Court for the Eastern District of Texas issued a preliminary injunction preventing the U.S. Department of Labor (“DOL”) from implementing new regulations which, among other things, would have increased the minimum salary level required to qualify to be exempt from overtime. These regulations would have extended overtime eligibility to an estimated 4.2 million workers or resulted in these employees receiving substantial salary increases.
As discussed in this Stroock Special Bulletin, regardless of the outcome of the injunction, New York employers will still be required to raise salaries or reclassify certain employees as non-exempt. The New York State Department of Labor (“NYSDOL”) recently adopted regulations, effective December 31, 2016, similar to those issued by the DOL, that raise the salary threshold for exempt status under the New York Labor Law.