A Federal judge in Texas granted a nationwide preliminary injunction halting the implementation of the new Department of Labor rule extending overtime pay to millions of Americans. Under the new law, as of December 1, 2016, employees classified as exempt would be required to be compensated at $47,476 annually in order to qualify for exemption from overtime, nearly double the old threshold of $23,660.
21 States filed an emergency motion to block this new law. “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 November 22nd ruling.
Although the overtime rule has been halted for now, there are a number of factors which could impact the final outcome, including the President Elect’s incoming administration and legal action to be taken by the DOL.
We will keep you updated on this law and it’s implementation as more information becomes available.