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NOTICE FROM DFM AND DHR REGARDING FLSA OVERTIME RULE – PRELIMINARY INJUNCTION GRANTED

The court in Nevada v. United States Department of Labor, Civil Action No. 4:16-CV-00731, 2016 U.S. Dist. LEXIS 162048, has issued a nationwide preliminary injunction on implementation of the U.S. Department of Labor’s new overtime rule. For now, all state agencies are instructed to suspend actions to move exempt employees to non-exempt FLSA status. All IPOPS actions already submitted in this regard will be held by SCO and not uploaded at this time.

Regarding pay increases given to maintain exempt status, actions already processed will not be revoked. If your agency has already submitted pay increase actions to SCO with an effective date of 11/20/2016 and the agency director wants them suspended at this time, contact your DHR consultant immediately as this action must occur today. No further pay increases based upon FLSA exempt status will be approved until further notice.