Earlier this year, the Department of Labor (DOL) announced a rule change to the Fair Labor Standards Act (FLSA) that impacted how some employees were classified under the FLSA for purposes of overtime eligibility. Drake, like many employers nationwide, prepared for the new rule to take effect on Dec. 1, 2016.

Last Tuesday, Nov. 22, the U.S. District Court for the Eastern District of Texas issued an injunction stopping, at least temporarily, the implementation of those changes to the FLSA. The DOL has the option to appeal the Order to the Fifth Circuit Court of Appeals, which may affirm or overturn the ruling. The proposed regulation will not go into effect on Dec. 1. 

Like many other employers including those in higher education, Drake is suspending planned employee classification changes in light of the court-ordered injunction. We will continue to closely monitor this developing situation and analyze any steps necessary to ensure compliance with the FLSA.

Human Resources is reaching out to affected employees and their managers with additional information and to address individual questions and concerns.

—Venessa Macro, Chief Administration Officer