Texas Court Enjoins Implementation of New Overtime Regulations
Yesterday, a federal court in Texas blocked the United States Department of Labor (“DOL”) from implementing revised regulations that would have increased the minimum salary that certain employees must earn in order to be exempt from receiving overtime pay. The revised regulations, which were scheduled to take effect on December 1, 2016, doubled the salary threshold from $455 per week to $913 per week for the executive, administrative, and professional exemptions, and changed the salary threshold for the highly compensated employees exemption from $100,000 in total annual compensation to $134,004 in total annual compensation.
The court concluded that the DOL exceeded its authority in significantly changing the salary threshold and ordered a nationwide preliminary injunction of the revised regulations. As a consequence, the revised regulations will not go into effect as scheduled on December 1, 2016. In the meantime, employers should continue to follow the existing regulations concerning overtime until a final ruling is issued by the court.