As previously communicated, a U.S. District Court judge from Texas issued a preliminary injunction postponing the effective date of the U.S. Department of Labor’s overtime threshold increase. Based upon this injunction, planned and previously communicated employee conversions from exempt to nonexempt status and other position adjustments have been put on hold. More information, including some helpful FAQ’s can be found below:
After hearing arguements from the DOL and 21 states/50 or more business groups that had challenged the DOL’s change, judge Amos L. Mazzant issued a preliminary injunction against the changes.
Is this a final decision that permanently puts an end to the rule?
No. The overtime rule could still be implemented later down the road.
A preliminary injunction isn’t permanent, as it simply preserves the existing overtime rule—which was last updated in 2004—until the court has a chance to review the merits of the case objecting to the revisions to the regulation.
However, the revised regulation may face an uphill battle: The judge wouldn’t have granted the preliminary injunction unless, among other things, he thought the challenge had a substantial likelihood of succeeding.
[Read more: Federal Judge Halts Overtime Rule]
Employees and supervisors have been notified today and further information will be communicated as it becomes available. Supervisor and Employee question and answer sessions have been scheduled and communicated to affected parties.
For further questions, please contact Christine Olson at email@example.com or (920) 465-2846.