FLSA Rule Changes Update – Temporary Injunction Issued

On November 22, 2016, the U.S. District Court for the Eastern District of Texas issued a temporary injunction, which “preserves the status quo while the court determines the (US Department of Labor’s) authority to make the final rule as well as the final rule’s validity.”  In light of the injunction, the State will not implement the rules at this time and there will be no change to employee status under the FLSA rules. In order to prevent mistakes in payroll and erroneous overtime payments, each agency should immediately reverse the changes in FLSA designation which were made to comport with the regulations that are presently unenforceable.

FLSA Rule Changes Effective December 1, 2016

On December 1, 2016, the Department of Labor’s final rule changes updating the overtime regulations will become effective.  These changes will have an effect on New Mexico State Government.  Key supporting documents and compliance resources are provided below.

The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

The FLSA requires employers to pay covered nonexempt employees a minimum wage of not less than $7.25 per hour effective July 24, 2009. For more information see the Wage and Hour Basic Information Fact Sheet.

An employee may be covered by the FLSA in two ways: “enterprise coverage” and “individual coverage.” For more detail on FLSA coverage, see Wage and Hour Division Fact Sheet #14: Coverage Under the Fair Labor Standards Act (FLSA)

Special rules apply to state and local government employment involving fire protection and law enforcement activities, volunteer services, and compensatory time off instead of cash overtime pay.

Some employees are exempt from overtime pay or both the minimum wage and overtime pay. Because exemptions are generally narrowly defined under the FLSA, an employer should carefully check the exact terms and conditions for each. Detailed information is available from the Local Wage and Hour Division Office.

The Wage and Hour Division of the U. S. Department of Labor administers and enforces the FLSA with respect to private employment, state and local government employment, and federal employees of the Library of Congress, U. S. Postal Service, Postal Rate Commission, and Tennessee Valley Authority.  The U. S. Office of Personnel Management administers the provisions of the FLSA with respect to any person employed by a Federal agency.

Click here for the DOL Wage and Hour Division Compliance Assistance page