On November 22, 2016 U.S. District Court Judge Amos Mazzan granted a preliminary injunction preventing the implementation and enforcement of the “Final Rule” overtime rule changes that were announced in May of 2016 by the US department of labor.
In September of 2016, 21 states filed a lawsuit against the Department of Labor’s final rule. The judge issued the preliminary injunction based on the fact that the rule created a “defacto salary-only test” and made millions of workers eligible for overtime even if their duties might qualify them for the exemption. The court found that the rule exceeds its delegated authority and ignores Congress’s intent by raising the minimum salary level such that it supplants the duties test.”
So, with all that being said the final rule changes will not go into effect December 1, 2016 as originally planned. There have not been any further announcements to address if the rule will go into effect and when.
Rest assured we will continue to monitor and inform you of any changes that occur. Follow us to keep updated on any changes to the overtime rule.