Federal Spotlight: DOL overtime rule halted
December 1, 2016
On Nov. 22, a federal judge in Texas issued a nationwide preliminary injunction stopping a new overtime rule from the Department of Labor (DOL) from taking effect Dec. 1. The judge found it likely the Obama administration overstepped its authority by raising the salary cap below which all workers must receive overtime pay from $455 a week to $921 a week, or $47,892 a year. The rule also includes an automatic updating mechanism to adjust the minimum salary level every three years.
The injunction halts enforcement of the rule for now. This means employers do not have to implement the new rule Dec. 1, but the injunction is not the final legal decision. The court will now determine whether the DOL had the authority to make the rule and the validity of the final rule, and DOL has the ability to appeal. We will keep you updated as this issue progresses through the legal system and on any changes that may occur under the new administration.