Federal Judge Blocks New Department of Labor Overtime Rule

On November 22, 2016, a federal judge in Texas issued a nationwide preliminary injunction prohibiting the Department of Labor from enforcing its new overtime rule doubling the salary threshold to qualify for the Fair Labor Standards Act’s “white collar” exemptions to $47,476 per year, and providing a mechanism for future automatic increases. Thus, the new rule will not go into effect on December 1, as previously scheduled.

The preliminary injunction was issued in a lawsuit brought by 21 states and a coalition of business groups, State of Nevada, et al. v. U.S. Dept. of Labor. The preliminary injunction will remain in force, unless modified or overturned, as the case proceeds. We will continue to monitor the case and advise of any significant developments.

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