Injunction Blocks Department of Labor’s Overtime Rule

On November 22, 2016, a federal judge in Texas placed an injunction on the Department of Labor’s overtime regulation. This injunction temporarily blocks the Department of Labor’s final rule, which would have increased the required salary level to $47,476 on December 1, 2016.  The court’s emergency injunction will allow further court proceedings to determine if the DOL exceed its authority with this new overtime rule.

This may be seen as a roadblock to employers that have been preparing for this change for months. Many have already changed their exempt workers to non-exempt or increased salaries of exempt employees to comply with the overtime rule. At this time, it is advisable to keep these changes for at least one pay cycle and then notify your employees if you wish to switch back. However, it is important to note that this temporarily blocks the final overtime rule instead of permanently overturning it.