Federal Court Blocks New Overtime Rule

In a surprising turn of events, a federal court in Texas issued a preliminary injunction yesterday halting the nationwide implementation of the Department of Labor’s new overtime rule increasing the salary threshold for exempt employees to $47,476 per year (for additional information on the rule, see Honigman’s prior blog posts.)

The unexpected decision means that the new rules will not go into effect on December 1, 2016. We are closely tracking the case as well as how the Trump administration will react to the decision. But for now employers are not required to increase salaries to maintain exempt status under the Fair Labor Standards Act.

If you have any questions concerning the injunction and how it may affect your business, please contact one of Honigman’s Labor and Employment attorneys.