Wyche Articles

Nov

23

DOL Rule Blocked

November 23, 2016

By Camden Navarro Massingill

On November 22, 2016, a Texas federal judge issued a nationwide preliminary injunction temporarily blocking the Department of Labor’s regulation extending mandatory overtime protections to white collar employees.  The revised white collar overtime regulations were set to go into effect on December 1, 2016.   

Under the new regulations, the standard salary level for the exemption from overtime requirements was increased from $455 per week ($23,660 a year) to $913 per week ($47,476 a year).  Thus, employees earning less than $47,476 per year – even if they were salaried – would be entitled to overtime pay as a matter of law.  On Tuesday, U.S. District Judge Amos Mazzant, ruling upon a consolidated set of cases, agreed with 21 states and a coalition of business groups that the new overtime rule is unlawful and granted their motion for a nationwide injunction.

While the revised rule is currently stymied, meaning the injunction blocks the regulations from going into effect on December 1, the injunction is only preliminary.  It is not permanent.  The Department of Labor can appeal Judge Mazzant’s decision to the Fifth U.S. Circuit Court of Appeals, which could act on an expedited ...

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