DOL Overtime Rule on Hold
November 30, 2016
For the past few months, Faw Casson has brought you news regarding the Department of Labor's (DOL's) updated Final Rule regarding overtime exemption laws.  These new rules were set to take effect on December 1, 2016.  Due to a nationwide injunction by US District Court Judge Mazzant of the Eastern District of Texas on Tuesday, November 22, 2016, this Final Rule is on hold until further notice.

The Final Rule would raise the salary limit for exempt employees from $23,660 to $47,476.

The injunction is only a temporary measure that suspends the regulation until the judge can issue a ruling on the merits.  It was brought about because of the judge's concerns that the legislation overreached its authority by raising the overtime salary limit so dramatically.  His concerns were also echoed by the U.S. Chamber of Commerce, who had challenged the rule.  The Department of Labor has vowed to continue fighting for those workers who work long hours with little compensation.

While it is unclear at this time what the coming days will bring for this ruling, Faw Casson will keep you up to date.  Please ask your advisor if you have any questions regarding how this impacts your business.