Federal Judge Blocks Obama Overtime Pay Rule Set to Go into Effect December 1, 2016
By M. Blake Downey, Associate Attorney
U.S. District Judge Amos Mazzant of the Eastern District of Texas imposed a nationwide injunction against the U.S. Department of Labor’s hotly contested Final Overtime Rule which was set to go into effect December 1, 2016. The rule changes would have, among other things, doubled the mandatory threshold for exempt salaried employees from $23,660 to $47,476 per year.
This immediate effect of the ruling is that until further notice, employers are not required to implement changes to employee compensation structure to comply with DOL Final Overtime Rule guidelines that were set to go into effect on December 1.
In issuing his decision, Judge Mazzant, in Sherman, Texas, agreed with 21 states and a coalition of business groups led by the U.S. Chamber of Commerce, that the new rule is unlawful and granted their motion for a nationwide injunction. The new rule was expected to have a significant impact on nearly every sector of the U.S. economy and particularly on nonprofit groups, retail companies, and restaurants – sectors which have many managers and supervisors whose salaries are below the new minimum.
THIS INFORMATION IS PROVIDED AS A COURTESY – NOT AS LEGAL ADVICE. Please know that we are raising the above issues as a courtesy and for informational purposes only. It is not intended as a substitute for legal advice concerning a particular situation that may be affecting your business.
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