Update: Department of Labor’s New Overtime Rule Blocked

Just 10 days prior to the implementation date, a Texas federal judge issued a nationwide injunction halting the Department of Labor’s (DOL) new federal overtime rule, which would have increased the salary threshold for certain exempt employees as we discussed in this post. The rule was set to be effective on December 1, 2016.

Twenty one states filed emergency motions for a preliminary injunction in October to block the rule. They claimed that the DOL exceeded its authority by raising the salary threshold too high and by providing for automatic adjustments to the threshold every three years.

This injunction is not permanent. But for now, employers can continue to follow the existing overtime rule until the court has a chance to review the merits of the case. Not surprisingly, the DOL is expected to challenge this decision. We will continue to keep you posted with developments in this litigation.

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