Federal Judge Blocks New Overtime Pay Plan

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On November 22, 2016, just 10 days before the implementation date, a federal judge in Texas halted the Department of Labor’s (DOL’s) new federal overtime rule under the Fair Labor Standards Act. The overtime rule was scheduled to take effect Dec. 1 and would have raised the salary threshold from $23,660 to $47,476. The rule also provided for adjustments every three (3) years.

Twenty-one states had filed an emergency motion for a preliminary injunction in October to halt the rule. They claimed that the DOL exceeded its authority by raising the salary threshold too high and by providing for automatic adjustments to the threshold every three years. The injunction signed by the judge keeps the existing rule salary threshold in place until a final decision in the case is reached.

So, for now, until a final decision in the case is reached, employers may continue to follow the existing overtime rule, which keeps the salary threshold at $23,660.

For help with employment law questions or other civil litigation issues, call Tracy Stroud, Attorney with Colombo Kitchin Attorneys in Greenville, NC, at 252-321-2020.