The impending change to federal overtime regulations has been put on hold by the U.S. District Court in the Eastern District of Texas. The court granted a nationwide preliminary injunction against the Department of Labor’s implementation of the rule, as the rule faces challenges from 21 states.
The rule would more than double the salary threshold at which the “white collar” exemption takes effect for certain categories of workers, from $23,660 to $47,476. The rule also introduces a mechanism to adjust the salary threshold every three years. For more on the rule itself, please read our blog on the final overtime rule.
The injunction may signal the end of the effort to implement the overtime rule, which has met with harsh resistance from several states and many Republicans in Congress. The rule is subject to Congressional challenge under the Congressional Review Act, a move that will likely succeed with support from the incoming Trump administration.