Federal Court Issues Nationwide Block Against New Overtime Rule

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The Obama Administration’s latest change to the nation’s overtime rules, which was set to take effect on December 1, 2016, has been blocked preliminarily by a federal court in Texas.  We previously notified you of the law and its potential reach here.  In short, the rule would have doubled the salary threshold exemption from $23,660 to $47,476 annually, with employees earning less than the higher amount qualifying for overtime pay.  The federal court ruling, that the new overtime law was made outside of the Department of Labor’s statutory authority, essentially halts the rule’s effectiveness.  Our employment lawyers here at Patel Burkhalter Law Group are monitoring this situation for you and will provide important updates as they become available.  In the meantime, please feel free to contact us with questions about the impact of this change on your business.

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