New Overtime Rule Blocked

The new overtime rule which would have raised the Fair Labor Standards Act’s salary threshold was set to go into effect Thursday, December 1, 2016. A federal judge in Texas issued an injunction against the new rule on Tuesday, November 22, 2016. What does this mean for employers?

  • At this time the salary change for exempt employees from $23,660 to $47,476 is on hold and you do not have to make changes by December 1, 2016.  You can continue to follow the existing overtime regulations. The court will review the rule to determine the DOL’s authority to make the rule and the validity of the rule.
  • If you have not made changes to comply with the new rule, you may want to postpone changes and wait until a decision is reached.  If you have already made changes to comply with the new rule, it is recommended to keep those changes in place.


The preliminary injunction isn’t permanent and you shouldn’t assume that the overtime rule will be permanently blocked. For employees that need reclassification or adjustments to salary you should still have a plan to move forward in the future.

Our office will continue to monitor the litigation and will provide further guidance as it becomes available. Please do not hesitate to contact our office with any questions.

Comments (1)

  1. So who should be paid overtime presently and at what rate?

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