Last week, a federal judge in Texas issued a preliminary injunction to the Department of Labor's (DOL's) overtime rule; the rule was set to take effect Dec. 1.
The rule more than doubles the current salary threshold of workers who are eligible for overtime pay under the Fair Labor Standards Act from $455 per week ($23,660 per year) to $913 per week ($47,476 per year) and also provides the threshold be updated automatically every three years and tied to the 40th percentile of full-time salaried workers in the lowest-wage region of the U.S.
With the injunction in place, businesses will not need to adhere to the new overtime rule requirements until the rule is fully litigated. After the court reviews the merits of the case, it still could allow the rule to take effect. Essentially, businesses now are in a holding pattern. However, the injunction is welcome news because it signals there is a chance the court could stop the rule from taking effect. DOL already has said it is considering its legal options when appealing the decisions.
NRLRC will continue to update members as information becomes available. More information about the regulation is available on DOL's website, www.dol.gov/WHD/overtime/final2016/