Nationwide injunction derails the Department of Labor’s new overtime pay rule: what’s next?

by | Jan 27, 2017 | Uncategorized

Texas Federal Judge Issues Nationwide Injunction Against Overtime Rule

A Texas federal judge recently issued a nationwide injunction derailing the Department of Labor’s new overtime pay rule which would have changed how employers compensate employees. The new rule would have raised the salary threshold at which white-collar workers are exempt from overtime pay from $23,660 to $47,476 starting December 1. An estimated 4.2 million salaried workers were eligible for overtime pay under the new rule.

The nationwide injunction is in response to lawsuits filed in September by states and special interest organizations challenging the rule, they argue it overstepped the government’s authority.

What’s Next?

You may have already implemented changes, such as salary increases, in preparation of the new overtime rule. Before retracting these changes, consider that the rule can still be implemented in the near future. Until a final decision has been made, abide by the existing overtime regulations.

If you did not plan for the December 1 implementation of the new overtime rule, use this time to prepare for possible future changes. We will follow this injunction closely and keep you apprised.

Our firm’s professionals can answer the questions you may have on how to handle this preliminary injunction. Call us today.