A preliminary injunction on the revised overtime exemption rules was issued by a federal court in the Eastern District of Texas on November 22, 2016, just eight days short of the December 1, 2016 effective date. The temporary injunction delays the enactment of the new rules pending further order of the court, but does not do away with the overtime rule.
The temporary injunction will give the court time to hear arguments regarding the matter in a pending lawsuit against the Department of Labor filed by a group of 21 states and partnership of more than 50 business groups.
Our Recommendations
- If your organization has not enacted changes required by the new rule, consider holding off on doing so.
- If your organization has already communicated applicable changes to employees, consider the cultural and morale issues of rescinding the changes. There is no penalty associated with providing overtime to employees who may be eligible for exemption.
For more information about the revised overtime exemption rules, please see our article, Implementing the New Overtime Regulations: 5 Steps to Predicting and Controlling Costs.
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