Last Tuesday, a federal judge in Texas issued a nationwide injunction against a new regulation expanding the number of workers who would be eligible for time-and-a-half overtime pay. The new overtime regulations were to take effect December 1, 2016. The new regulations would have raised the salary limit below which workers automatically qualify for overtime pay to $47,476 from $23,660 resulting in increased pay for millions of employees in both the for-profit and non-profit sectors.
The judge ruled that the U.S. Department of Labor exceeded its authority when it issued the regulations that changed the criteria for determining which executive and administrative employees are “exempt” from being paid overtime by revising the salary threshold that triggers the overtime pay exemption. The injunction stops the new rule from becoming law. It does not alter existing federal and state laws regarding fair labor standards, including properly classifying employees as being exempt from or entitled to being paid overtime.
This post is courtesy of guest blogger Deanna Rader. Deanna is our go to employment and litigation attorney and can be found at http://www.radermayrose.com.