New Overtime Rule Set to Go Into Effect on December 1 Has Been Stopped

In May this year, the U.S. Department of Labor issued a far-reaching rule changing the white-collar overtime exemption. The new rule increased the salary floor from $455 per week ($23,600 per year) to $913 per week ($47,476 per year). For more information about the new rule.

The new rule was to become effective next week, on December 1.

But yesterday, a federal court in Texas issued a preliminary injunction enjoining the Department of Labor from “implementing and enforcing” the new rule. The injunction is nationwide in scope and it is in effect until further notice.

That means, for now, the regulation will not go into effect on December 1.

The Department of Labor could appeal the issuance of the temporary injunction to the U.S. Court of Appeals. Of course we will monitor this situation and keep you informed.

Whether to proceed with any changes that an employer has planned in order to comply with the now-enjoined rule, or to put their plans on hold, is something that each employer should evaluate given their individual situations. Please let us know if we can help in making those decisions.

If you have any questions on this topic or need assistance, please contact our Labor & Employment Law Practice Group. We encourage you to subscribe to our Labor & Employment E-Briefs to get the latest HR news, tips, and updates.