Federal Judge Halts Overtime Rules

Only 10 days before the implementation date, a federal judge in Texas granted an injunction halting the Department of Labor’s (DOL’s) new federal overtime rules, which would have doubled the Fair Labor Standards Act’s (FLSA’s) salary threshold for exemption from overtime pay.

The overtime rule was to take effect December 1, 2016, and would have raised the salary threshold from $23,660 to $47,476. The new rule also included triennial adjustments based on the 40th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census region.

Our firm will stay on top of the status of this matter. But for now, employers can maintain their old overtime structure and processes..