Preliminary Injunction to Halt New Federal Overtime Rule

On November 22, a federal judge in the U.S. District Court for the Eastern District of Texas issued an preliminary injunction to halt implementation of the Department of Labor’s new federal overtime rule, which would have increased the salary threshold for overtime exemption. The new overtime rule, scheduled to be effective on December 1, would have doubled the salary threshold from $455 per week to $913 per week.

This preliminary injunction is not a permanent decision, it only preserves the status quo as the court reviews the merit of the lawsuits filed by 21 states and the U.S. Chamber of Commerce. While the ruling temporarily halts the increase of the salary test for FLSA overtime exemption, it does not change the duties test an employee must also meet for FLSA overtime exemption.

Certified Payroll Associates will continue to monitor this situation and will provide updates as more information is available.

Please do not hesitate to contact us if you have any questions regarding this preliminary injunction.