A federal court in Texas last week issued a nationwide injunction blocking the U.S. Department of Labor’s new rule that extended overtime pay protections under the Fair Labor Standards Act.
Currently, most workers are guaranteed the right to overtime pay for every hour worked beyond the normal 40-hour workweek. However, the act allows exemptions for certain employees, such as qualified white-collar workers, which do not require employers to pay for extra hours worked. The rule, which was slated to take effect Dec. 1, 2016, would have increased the minimum salary threshold for the exempt white collar workers to $47,476.
Pending further action by the court, the implementation date has been postponed, which means that employers are no longer obligated to comply with the new salary level requirement of white collar exempt workers for the time being. Whether this injunction will become permanent depends on the outcome of a lawsuit filed by several states and business organizations.
IDFA will continue to monitor developments in this lawsuit and notify members of any changes to the implementation of the overtime regulation.
Members with questions may contact Emily Lyons, IDFA director of regulatory affairs and counsel, at email@example.com.