Court Blocks Department Of Labor Overtime Rule

Skoler, Abbott & Presser, P.C., the leading labor and employment law firm serving employers in the greater Springfield area, announced that a surprising turn of events on November 23 has put a hold on the controversial Department of Labor (DOL) overtime rule that would have made more than 4 million more workers eligible for overtime beginning December 1.

A Texas federal court halted the process, issuing a court order granting a preliminary injunction that was filed by 21 states across the country along with a coalition of business groups who were challenging the rule. The order effectively blocks the implementation of the rule nationwide, meaning it will not become effective December 1 as previously expected.

The decision is not final and the DOL could (and likely will) appeal, but with Republicans controlling both houses in Congress and the Trump Administration taking office in January, the future of the overtime rule is certainly in doubt.

“For now, if you have any questions about enforcement of the rule and/or scaling back changes already in place, we suggest contacting employment counsel to discuss how this decision will impact your overtime compliance obligations,” said Attorney John Gannon, of Skoler, Abbott & Presser, a boutique firm that exclusively practices labor and employment law.

The rule would raise the minimum annual salary threshold for exempt workers to $47,476 or $913 per week. Almost all employees earning a salary less than $47,476 would need to be classified as nonexempt for the purposes of wage and hour law and some employers would need to reevaluate pay scales for certain employees.