A federal judge in Texas has issued a preliminary injunction halting the application of a federal rule that would have made overtime pay available to full-time salaried employees earning up to $47,476 a year.
As we noted in our blog post earlier this year, “New overtime rules will affect all employers,” the rule was expected to take effect December 21. The injunction was issued due to a combined lawsuit from 21 states and business groups that contends that the Labor Department does not have the authority to make the proposed change.
Firms planning on making changes should seek the advice of counsel on how to proceed. With uncertainty surrounding the incoming Administration, the long-term future of the new overtime rule is in doubt.