For employers who have been struggling to adjust to the new overtime rule, which was set to go into effect on December 1, 2016, there is a temporary reprieve. On November 22, 2016, a federal court issued a nationwide injunction, preventing the Department of Labor’s new rule from going into effect. Ruling on a motion for a temporary injunction, the court held that the states and business groups challenging the rule had a likelihood of establishing that the new rule is invalid. The new overtime rule would, among other things, more than double the minimum salary threshold for exempt employee status.
What does this mean for employers? The overtime rule will no longer go into effect on December 1, 2016, so employers who were considering making changes to adapt to the overtime rule — such as raising salaries, changing employee hours, or making other adjustments — can put these plans on hold. The new overtime rule may yet go into effect at a later date, depending on whether there is an appeal and/or any shifts in direction by the incoming administration.
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