Federal Judge Blocks New Overtime Rule

On November 22, 2016, a Federal Judge in Texas issued a nationwide injunction to block the new Department of Labor overtime exemption rules from taking effect. The Department of Labor regulation, previously set to take effect December 1, 2016, would have doubled to $47,476 the maximum salary a worker can earn and still be eligible for mandatory overtime pay. (See previous blog discussing these new rules).

The ruling arose from a case filed by a coalition of 21 states, who argued that the administration had exceeded its statutory authority in raising the overtime salary limit. A large number of business groups filed a similar lawsuit, and the suits were later consolidated.

The injunction is only a temporary measure that suspends the regulation until the judge can issue a ruling on the merits. With Republicans controlling both houses in Congress and the Trump administration set to take office in January 2017, the new overtime rule's long-term future remains in limbo.

For more information, or if you have any questions, contact Business Law attorney Jeffrey M. Black at (616) 458-3994 or email jblack@pmalawpc.com.

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