BREAKING NEWS ALERT: Overtime Rules Delayed

Yesterday a federal judge granted a nationwide injunction stopping the implementation of the new overtime rules proposed by the Department of Labor. The rules, had they taken effect, would have significantly raised the minimum salary required to qualify for an overtime exemption. The rules were to become effective on December 1, 2016.

The U.S. Chamber of Commerce and 21 states challenged the departments’ authority to adopt the rules. Judge Mazzant, a federal judge for the Eastern District of Texas, agreed with the challengers and granted a temporary injunction to prevent the new rules form taking effect. 

Considering a new presidential administration and continuing congressional concerns – both the Republicans and Democrats had bills delaying some aspect of the rule under discussion in both houses of Congress – these rules may never take effect. Harrison Sale McCloy will continue to watch this issue carefully.