As we noted back in May, sweeping new regulations regarding overtime pay were to take effect on December 1, 2016. A federal judge has temporarily blocked the new rule which would have doubled overtime salary thresholds.
Texas and 20 other states had sued the Department of Labor to stop the proposed change and asked a Texas judge for an injunction to prevent the rule from going into effect until the case is decided. The Big “I”, along with 12 other national trade associations, also sued the Department of Labor in an attempt to halt the rule from taking effect. IIABA issued a statement commending Judge Mazzant’s decision to grant the injunction.
“A preliminary injunction preserves the status quo while the court determines the department’s authority to make the final rule as well as the final rule’s validity,” said Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas in a Nov. 22 ruling.
As of now, employers do not need to implement changes to comply with the December 1 deadline. The court will eventually hear the full case and decide whether or not to allow rule to go forward.
Get More on Overtime Rules at the Joe Vincent Management Seminar
Anne Price will be giving an in-depth lecture at IIAT’s upcoming Joe Vincent Management Seminar (Jan 29 – 30, 2017). Even without the new rule, following existing overtime regulations can be tricky. Ms. Price will report on the status of the overtime rule, its key provisions as well as other Department of Labor audit targets that can cause agencies problems including:
- Wage and hour record-keeping
- Independent contractor status verification
- How to document properly
- Employees working “off the clock”