The U.S. District Court for the Eastern District of Texas has blocked the Dec. 1 implementation of the U.S. Department of Labor’s new overtime rule. The injunction covers the entire nation.
The Department of Labor can appeal this decision, so the issue is not resolved, but you will not be required to re-evaluate your staff and determine who will be required to be hourly employees under the new salary threshold of $913 per week that the Labor Department said would be necessary for an employee to even be considered exempt from overtime requirements.
According to Michael Zinser of the Zinser Law Firm, the Court said the DOL exceeded its authority by violating the Congressional intent that certain employees could be exempted from overtime because they work in an executive, administrative or professional capacity. The court said salary thresholds were not part of the Congressional action authorizing the DOL to act.
The lawsuit was filed by 21 states and multiple business groups.
Zinser predicts with the change in administration and new Congress that the DOL overtime rule will die.
