BREAKING NEWS: December 1 deadline for implementing wage and hour changes has been postponed!
On November 22, a Federal Court in Texas granted an injunction that blocks the implementation of the Department of Labor’s new rule that would have doubled the minimum salary threshold for employees to be exempt from the law that requires overtime pay for hours worked over forty in any given work week. The rule was set to become effective on December 1, so many employers across the country have been preparing for the changes by raising the salary of their exempt employees or changing the status of exempt employees who earn less than $47,476 per year. For some, these restructurings were significant. Yesterday’s ruling enjoins the implementation of the rule nationwide. In essence, the Court ruled that the Department of Labor exceeded its authority by requiring employers to pay overtime wages based on salary rather than an employee’s duties.
The Department of Justice is expected to appeal the decision but, for now, the effective date of the rule has been lifted.