A Federal court in Texas issued a temporary injunction yesterday against the new Department of Labor (“DOL”) overtime regulations that were set to go into effect December 1st.
The injunction follows court arguments heard on November 16th in a lawsuit brought by 21 states alleging the new DOL’s rules exceeds the DOL’s authority and violated administrative law requirements. The new regulations propose to raise the salary threshold for exempt employees from $23,660 to $47,476 and provide for an automatic increase to the threshold every three years.
Although the regulations will not go into effect on December 1st, employers should understand that this is a temporary injunction and that the injunction could be lifted or changed. Additionally, although there may be legislation or other administrative efforts to address the DOL’s regulations by the Trump administration next year, those changes will take time. Therefore, Employers need to monitor this situation regularly to ensure they are in compliance with the law.