Wednesday, Nov 23, 2016

Yesterday, the U.S. District Court in Texas blocked the Department of Labor's overtime rule from going into effect on December 1, 2016. In its injunction, the court ruled regulation exceeded the authority granted to the DOL by Congress.  Yesterday's decision was only temporary, but it delays the implementation from taking place as planned next week.

Under the rule, which was set to take effect Dec. 1, all employers would be required to pay a minimum salary of $913 per week, or $47,476 per year, in order for an employee to be classified as exempt.  CDA reported on the new FLSA rule in the December CDA Update, noting that the rule would take effect Dec. 1.  With the injunction issued, employers are not required to comply with the rule by Dec. 1.  SFDS & CDA will keep members updated on the status of the injunction and court case.