Court Takes Injunction on Salary Threshold Levels Under Advisement

16 November 2016 Labor & Employment Law Perspectives Blog

Today, Judge Mazzant of the Eastern District of Texas Sherman Division heard arguments on an Emergency Motion for Preliminary Injunction regarding changes to the federal salaried exemption threshold, which, absent an injunction, become effective on December 1, 2016.

During the hearing, which lasted over three hours, Judge Mazzant asked several questions that provide insight into the issues he views as important to his ruling. For example, he questioned whether the court had authority to issue a nationwide injunction. He also asked how to reconcile Auer v. Robbins, 519 U.S. 452 (1997), a case that gives broad authority to the Secretary of Labor to “‘define and delimit’ the scope of the exemption for executive, administrative, and professional employees.” Judge Mazzant questioned the Department of Labor on its authority to define the limit. Judge Mazzant also noted that his ruling will not be based on political rhetoric or speculation about the change in administration, but will instead be guided by the law. Although Judge Mazzant took the matter under advisement with a stated hope to rule by November 22, 2016, we will continue to monitor the status. Read minutes from the hearing here.

Regardless of the federal wage and hour battle, there is significant wage and hour activity on the state level that reflects a trend toward increasing minimum wage. While the media coverage of election night focused on the outcome of national votes, four states voted to increase minimum wage, something that will have an immediate impact.

Wages per hour on or after January 1, 2017 Wages per hour on or after January 1, 2018 Wages per hour on or after January 1, 2019 Wages per hour
on or after
January 1, 2020
Arizona $10.00

($7.00 for tipped employees)

$10.50

($7.50 for tipped employees)

$11.00

($7.00 for tipped employees)

$12.00
($9.00 for tipped employees)
Colorado $9.30

 

$10.20 per hour $11.10 per hour $12.00
Maine $9.00

($5.00 for tipped employees)

$10.00
($6.00 for tipped employees)
$11.00

($7.00 for tipped employees)

$12.00
($8.00 for tipped employees)
Washington $11.00 $11.50 $12.00 per hour $13.50

*Jan. 1, 2021 – $13.86

*Jan. 1, 2022 – $14.23

 

This state level activity follows numerous municipalities approving increases to minimum wage. For example, Los Angeles, San Francisco, Seattle, Richmond, and Portland (Maine) are among many cities that have adopted minimum wages above their state minimum wage.

 

  July 1,
2017
July 1,
2018
July 1,
2019
July 1,
2020
 
Los Angeles

 

$12.00 $13.25

 

$14.25

 

$15.00

 

San Francisco

 

$14.00

 

$15.00 Adjusted per Consumer Price Index Adjusted per Consumer Price Index
  January 1, 2017 January 1, 2018 January 1, 2019 January 1, 2020 January 1, 2021
Seattle $11.00 $11.50 $12.00 $13.50 $15.00
Richmond $12.30 $13.00 Adjusted per Consumer Price Index Adjusted per Consumer Price Index
Portland (Maine) $10.68 Adjusted per Consumer Price Index Adjusted per Consumer Price Index Adjusted per Consumer Price Index

 

Unless the court issues the injunction, employers should have plans in place for compliance with state and federal law.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services

Insights

RCE PTA Carve-Out Resumes After Interference
18 September 2019
PharmaPatents
Upcoming Webinar: Maximizing Solar Tax Credits - Navigating the Start of Construction Rules (Part 1)
17 September 2019
Renewable Energy Outlook
When Birds Finally Find a Nest
17 September 2019
Dashboard Insights
DHS Moves Closer to Launching its H-1B Cap Registration System
16 September 2019
Labor & Employment Law Perspectives
MedTech Impact Expo & Conference
13-15 December 2019
Las Vegas, NV
Review of 2020 Medicare Changes for Telehealth
11 December 2019
Member Call
BRG Healthcare Leadership Conference
06 December 2019
Washington, D.C.
CTeL Telehealth Fall Summit 2019
04-06 December 2019
Washington, D.C.