Judge Amos L. Mazzant of the U.S. District Court for the Eastern District of Texas has issued a nationwide injunction halting a new overtime regulation set to take effect December 1, 2016. The new regulation would have required employers to pay overtime to employees earning salaries of $47,476 per year, doubling the previous threshold of $23,660 set forth in 2004. The injunction temporarily stops implementation of this regulation until the court rules on challenges made to the Department of Labor’s authority to make this regulation as well as the validity of the regulation. The Department of Labor has expressed strong disagreement with the court’s decision and is currently considering its legal options regarding challenging the injunction.
What does this mean for employers? For now, the overtime rule will not take effect as planned on December 1, 2016 but it could still be implemented at some point in the future. Employers may continue to follow the existing overtime regulations until a final decision is reached.