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Wednesday
Nov232016

Breaking: Injunction Stops December 1 Overtime Rules

Yesterday, a federal judge in Texas granted a preliminary injunction halting implementation of the new FSLA overtime rules scheduled to take effect December 1. The decision is a result of an emergency motion for a preliminary injunction filed in October. This reprieve for employers comes as a very pleasant surprise, as most experts held out little hope that the court would grant the injunction.

The preliminary injunction is not a final decision. It merely preserves the current overtime regulations, while “the court determines the department’s authority to make the final rule as well as the final rule’s validity,” wrote Judge Amos Mazzant in the November 22 ruling.

Judge Mazzant granted the preliminary injunction in part because the Department of Labor rules put in place a significant increase to the salary level creating 'essentially a de facto salary-only test.' “If Congress intended the salary requirement to supplant the duties test, then Congress—and not the department—should make that change,” wrote Mazzant.

The battle over the overtime rules is not over. The Department of Labor is expected to appeal the decision. So stay tuned. But for now, enjoy your Thanksgiving dinner without having to wonder how to comply with the December 1 deadline.

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