Update on Changes to Overtime Rules

November 28, 2016

 

 

On Tuesday, November 22, 2016, a Federal judge in Sherman, Texas blocked the Obama administration's executive action that would have given more white-collar workers overtime.  The change was slated to go into effect on December 1, 2016-- just a little more than a week after the court ruling.

 

The rules issued by the Department of Labor would have raised the maximum salary to $47,892 per year for full-time executive, administrative, and professional workers to be exempt from overtime pay requirements.  That salary cap was also set to be adjusted every three years beginning in 2020.

 

As a result of this temporary injunction, there will be no change in the overtime rules. The Department of Labor said that it is considering all of its legal options.  However, given the election results and the pending change in administrations, it is not clear that the current administration has sufficient time to get this injunction lifted.

 

The case under which this ruling came is the State of Nevada, et al vs. U.S. Department of Labor, 16-00731, U.S. District Court, Eastern District of Texas.  The original suit was brought by 21 states and various business groups including the U.S. Chamber of Commerce.  Read the whole filing here.  

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