Texas Federal Circuit Court Issues Nationwide Injunction Against DOL’s New Overtime Ruling

The Department of Labor is now prevented from implementing the new Final Rule until charges made by 21 states and more than 50 business groups that sued to block the rule can be further investigated. 


The states and business groups claimed that the new Final Rule would cause serious financial harm to certain employers, and that the Obama administration had gone beyond its authority in issuing the mandate to change the salary threshold from $23,660 to $47,476 (read more here).

 According to the injunction, employers should continue to follow the current rule and not put into place any changes until after the new Final Rule has been reviewed further.  

This does not definitely mean that the new overtime rule will go away  —  it can be put into place after further review, either in its existing format, or slightly altered. I​t is very possible that the DOL will challenge the decision of the Texas Federal Circuit Court because they back their decision-making process and deem the new Final Rule fair and legal.

If you have already put in place changes in anticipation of the Dec. 1 deadline, it might be difficult to undo what’s already been done, especially if that involved increasing wages to comply with the higher limits. 

Take comfort in the fact that even if the Final Rule in its current state is overturned, there will probably be a new rule with an increase to the overtime threshold and you'll be ahead of the game when that is eventually handed down.

If you have not already put in place changes, hold off for now but hold on to your plans in anticipation of the new iteration of the ruling which will likely come once the Trump administration is settled. 

For more information on the new overtime rule check out the DOL's video below or website here

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