Temporary Injunction Entered Against New Overtime Rules
23 Nov 2016
A Texas judge has issued a nationwide temporary injunction against the U.S. Department of Labor’s overtime rules, also known as the “white collar exemptions,” which were set to take effect on December 1st. This injunction will delay the implementation of the new regulations that would have significantly raised the minimum salary requirement for employees who are exempt from overtime. Under these new regulations, the minimum salary requirement for exempt employees would have increased to $913 per week or $47,476 annually, which nearly doubled the current threshold. It was estimated the new regulations would have cost the nation’s businesses $295 million per year. Unless there is an appeal by the U.S. Department of Labor, this ruling likely will remain in place until a final decision is reached in the underlying litigation. In the meantime, there is a temporary reprieve from the December 1st deadline that would have required employers to either raise exempt employees’ salaries or re-classify such employees as non-exempt and pay any required overtime.