BREAKING NEWS: U.S. District Court Granted Preliminary Injunction on FLSA Overtime Rule
Wednesday November 23rd, 2016
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Less than two weeks before the FLSA overtime new rule was slated to go into effect, a federal judge at the U.S. District Court in Texas blocked the policy. Judge Amos L. Mazzant III issued the surprising decision on Tuesday after 21 states and a long list of businesses filed lawsuits that would challenge the rule. The concerns from these states and private employers include the added work and financial strain that adjusting the wage and hour processes would put on businesses around the country, as well as the automatic updating clause.
The FLSA overtime rule will change the salary threshold for exempt employees from $23,660 per year to $47,476 per year. The Department of Labor will likely appeal the ruling made by the judge.
For now, employers should understand that the new overtime rule may not go into effect on December 1, as was originally planned, but the injunction is not necessarily permanent.