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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.

Blog Author - Justworks
Justworks
Nov 23, 20161 minute
Blog Author - Justworks
Justworks

Justworks is a technology company that levels the playing field for all small businesses. Through our software and as a partner, we help our customers take care of their teams, streamline their operations, and navigate the complex aspects of managing a workforce with confidence.

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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.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
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Blog Author - Justworks
Justworks
Nov 23, 20161 minute

Justworks is a technology company that levels the playing field for all small businesses. Through our software and as a partner, we help our customers take care of their teams, streamline their operations, and navigate the complex aspects of managing a workforce with confidence.

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