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Federal judge temporarily suspends new overtime rules set to take effect Dec. 1

Federal judge temporarily suspends new overtime rules set to take effect Dec. 1
On Tuesday, November 22, 2016, a federal judge issued a preliminary injunction against Department of Labor’s overtime regulation that would raise the salary threshold, below which workers automatically qualified for overtime pay, to $47,476 a year. This new overtime regulation was set to take effect on December 1.

Client Alert TagJudge Amos L. Mazzant III of the Eastern District of Texas ruled that the DOL had exceeded its delegated authority by significantly raising the overtime salary limit from $23,660 to $47,476 (from $455 a week to $921 a week). This injunction is a temporary measure that suspends the regulation until the judge issues a ruling on the merits, and it affects workers nationwide.

The DOL has stated it is confident in the legality of the new overtime regulations and will likely be seeking an appeal. It could still face a strong challenge from President-elect Trump or be changed by new legislation from Congress.

The ruling leaves room for uncertainty as to how businesses should proceed. If you would like to discuss how this development affects you or your business, contact your WK advisor at (573) 442-6171 or (573) 635-6196.


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Posted 11-23-2016 | Topics: Client Alerts, News,