Court Issues Injunction Against New Overtime Rule

We cannot address whether the legal opinion expressed here would be shared by your own legal counsel.  Please seek advice should you delay complying with what now seems to be a stalled, new regulation on minimum salary for exempt employees.  --Michigan HR Group

November 23, 2016

Breaking News! Federal Court Suspends Enforcement of Overtime Rule

A federal judge in Texas has issued a nationwide injunction blocking the US Department of Labor’s (US-DOL) new overtime rule. The injunction halts enforcement of the rule until the case is decided. 

The regulation was scheduled to take effect on December 1, 2016. It would raise the salary limit under which workers automatically qualify for overtime pay to $47,476 from $23,660. In addition, the salary threshold would be tied to the 40th percentile for full-time salaried workers in the lowest income Census region (currently the south) and updated every three years.

So what does this mean for employers? The overtime rules will not go into effect on December 1, but employers should be aware that the regulations could still be implemented at a later date. Until a decision is reached, employers should continue to follow the existing overtime regulations.

More information on the rule can be found on the Michigan Chamber’s website. The Michigan Chamber will continue to provide updates on this new development.