Federal Court Blocks Overtime Rule

Yesterday afternoon, a Federal judge in Texas halted the Department of Labor’s (DOL) new overtime rule by issuing a nationwide preliminary injunction. The recent DOL’s rule requiring “white collar” employees to be paid at least $913 per week in order to remain exempt under the Fair Labor Standards Act (FLSA) will NOT go into effect on December 1, 2016, as planned.

This injunction will delay activation of the rule and the future of the overtime rule is unclear as it will now attract the attention of both executive and judicial branches. So, employers who were waiting until December 1st to implement this employee classification change may continue delaying.

Cardinal Services will continue to monitor developments and keep you updated in regards to changes that may affect your workplace.