The Department of Labor’s new overtime ruling set to take effect on Dec. 1st has been halted by a federal judge from Texas.
The DOL overtime rule affects how employers pay some exempt employees for overtime work by raising the Fair Labor Standards Act’s (FLSA’s) overtime exemption salary threshold from $23,660 to $47,476.
On Nov. 22nd, Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas granted a preliminary injunction in a lawsuit challenging the DOL’s ruling, stating the new overtime rules would cause more government costs in the plaintiffs’ states and cause businesses to pay millions in additional employee salaries.
Due to this injunction, the nationwide overtime ruling will not take effect Dec. 1 as planned and businesses will not have to implement the new overtime changes on Dec. 1st. Existing overtime regulations may proceed.
According to the Society For Human Resource Management (SHRM), the overtime rule could still be implemented at a later date as the preliminary injunction isn’t permanent.
The injunction only stands until the court can review the case and subsequent decisions are made. In addition, the DOL could challenge the decision. The time this will take is unknown, putting the overtime ruling in limbo.
The DOL is considering legal options and issued the following statement:
“We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The department’s overtime rule is the result of a comprehensive, inclusive rulemaking process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.”