On November 22, 2016, a federal judge in Texas placed an injunction on the Department of Labor’s overtime regulation. This injunction temporarily blocks the Department of Labor’s final rule, which would have increased the required salary level to $47,476 on December 1, 2016.
Employee classification is highly litigated and the distinction between exempt and nonexempt is critical. With the federal law increasing the salary threshold for exempt employees to $47,476 beginning December 1, 2016, employers must either give current salaried employees a raise or reclassify their position.
What is the difference between nonexempt and exempt employees? The main differences are how they are paid and job duties.