A Federal Judge Halted the New Overtime Rule. What We Know
The future of the U.S. Department of Labor’s new overtime rule, previously set to go into effect on December 1st, is now uncertain. Here’s what employers can do for now.
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On November 22, 2016, a federal judge in Texas issued a preliminary injunction halting implementation of the U.S. Department of Labor’s (DOL's) new federal overtime rule, which was set to take effect on December 1st, 2016 nationwide.
What the New Overtime Rule Entails
The new overtime rule would have:
Increased the Fair Labor Standards Act’s (FLSA’s) salary threshold for certain exempt employees (from $23,660 to $47,476 per year)
Provided for salary threshold increases every three years
This decision means that the new overtime rule did not take effect on December 1st, 2016, and is currently on hold.Instead, the FLSA’s existing minimum salary threshold, of $23,660 per year, for certain exempt employees will continue to apply while the court reviews the merits of the proposed case. The new federal overtime rule could still be implemented later on, and we’ll keep you updated when we know more.
How Justworks Can Help
We will keep tabs on the status of the court case and communicate changes with Justworks customers. As always, we are here to answer any of your questions. You can reach us at [email protected] or (888) 534-1711.
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