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As you may have heard as you were heading out for the Thanksgiving holiday, a federal judge in Texas has granted a preliminary injunction that blocks implementation of the Department of Labor's proposed new federal overtime rule. The rule, which would have more than doubled the salary threshold for exemption from overtime pay, was scheduled to take effect December 1. We’ve covered the proposed rule changes before, and we hosted a live event talking about the intricacies of the proposal in August.
The latest ruling means the changes are on hold – for now. We point out that the injunction is temporary and only, according to U.S. District Court Judge Amos Mazzant, “preserves the status quo while the court determines the department's authority to make the final rule as well as the final rule's validity.”
No one knows at this point whether the rule will be reinstated or when. We will be staying abreast of the issue, and we encourage all area businesses to do the same. In the meantime, this article from the Society for Human Resource Management offers some potential advice on what companies should do in the interim. Stay tuned to this space for more information.