Final Overtime Rule on Hold

November 30, 2016

A November 22 preliminary injunction has blocked the Final Overtime Rule scheduled to become effective Thursday. Last week’s ruling by Federal Judge Amos Mazzant determined that the Department of Labor overstepped its authority by amending the salary threshold for employees exempt from overtime pay.

The overtime rule would have increased the salary level for exempt white collar employees to $913 per week. Nearly two dozen governors and attorneys general challenged the overtime rule. Judge Mazzant sided with the plaintiffs, saying that the Department of Labor could not create a distinct standard for overtime eligibility. The Department of Labor is likely to appeal the decision, meaning the preliminary injunction could be revoked in the upcoming weeks or months.

Current requirements under the Fair Labor Standards Act and state/local employment regulations are not impacted by the preliminary injunction. Other rules that have been effective for over a decade remain intact, and nonprofits must continue to classify employees based on their performed duties.