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The new overtime rule which was to become effective December 1 has been put on hold. A federal judge in Texas issued a temporary injunction yesterday, November 22, ruling the Department of Labor does not have the authority to utilize a salary level test or automatic updating.

The new rule would require employers to pay overtime to employees who earn salaries less than $913 per week or $47,476 per year, more than doubling the current requirement of $455/week or $23,660 per year.

Lawsuits were filed by 21 states and dozens of business groups in Texas arguing the Department of Labor had exceeded its authority. With this preliminary injunction, the ruling is delayed from being effective until further court action.

Texas U.S. District Court Judge Amos Mazzant who issued the temporary injunction stated, “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.”

This future of this new rule is now uncertain. This is an important issue to watch for employers and KMA will continue to post updates.

Contact KMA if you have questions or need other HR support.