In a dramatic turn of events, a Texas Federal Judge halted the Department of Labor’s (DOL’s) new federal overtime rule. The new overtime rule would have raised the Fair Labor Standards Act’s (FLSA’s) salary threshold for exemption from overtime pay from $23,660 to $47,476. The rule was scheduled to take effect December 1, 2016.
A preliminary injunction preserves the status quo while the court determines the department’s authority to make the final rule as well as the final rule’s validity,” said Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas in a Nov. 22 ruling.
Until a final decision is reached, employers may continue to follow the existing overtime rule. We advise employers to keep in mind that the block of the new rule may not be permanent, therefore, it is wise to have a plan in place if the rule goes into effect in the future.
Please feel free to contact us with any questions or concerns.