Breaking News! Federal Court Suspends Overtime Rule

November 23, 2016

A federal judge in Texas has issued a nationwide injunction blocking the US Department of Labor’s (US-DOL) new overtime rule. The injunction halts enforcement of the rule until the case is decided. 

The regulation was scheduled to take effect on December 1, 2016. It would raise the salary limit under which workers automatically qualify for overtime pay to $47,476 from $23,660. In addition, the salary threshold would be tied to the 40th percentile for full-time salaried workers in the lowest income Census region (currently the south) and updated every three years.

So what does this mean for employers? The overtime rules will not go into effect on December 1, but employers should be aware that the regulations could still be implemented at a later date. Until a decision is reached, employers should continue to follow the existing overtime regulations.

View more information on the rule here. The Michigan Chamber will continue to provide updates on this new development. In the meantime, please feel free to contact Wendy Block at wblock@michamber.com with any questions.