Breaking News: Judge Grants Injunction for Department of Labor Ruling

Earlier this year, The Department of Labor announced a Final Rule on overtime pay, which was set to take effect December 1, 2016.

Here are some key provisions of the Final Rule:

• All workers earning up to $913 per week, or $47,476 annually for a full-year worker, must be paid at the overtime rate for any time worked beyond 40 hours per week.
• Overtime pay rate is time and one-half the regular hourly rate.
• The threshold for highly compensated employees has gone up, from $100,000 to $134,004.
• Automatic updates to these thresholds will be made every three years, beginning January 1, 2020.

However, a federal judge in Texas blocked the ruling yesterday. Many businesses and special interest groups had filed suit, claiming that the ruling places undue burden on them and that they weren’t given sufficient time to comply before the implementation date. U.S. District Judge Amos Mazzant, in Sherman, Texas, agreed and granted their motion for a nationwide injunction.

We will provide more updates on this ruling as they become available. You can read more about this injunction from Reuters.

You may have questions about how this will affect your business, and we invite you to contact us if we can help. Our office will be closed Thursday and Friday for the Thanksgiving holiday, and will reopen Monday with normal business hours.