Federal Judge Puts New Overtime Rule on Hold

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A federal judge in Texas has issued a national temporary injunction on implementation of the Obama Administration's new overtime rule, previously set to go into effect on December 1.


As has been reported by MHI on multiple occasions, the Department of Labor (DOL) had issued a new rule that would have doubled (to $47,476) the salary threshold for the so-called "white collar" exemption to overtime pay. The rule would also have indexed future increases in the threshold to the Consumer Price Index.


The injunction is only temporary. However, the decision by the Obama-appointed judge signaled a strong likelihood that the court would eventually side with the coalition of business groups and state attorneys general that sued to block the regulation. In his written decision, he stated that the final rule exceeded the DOL's authority.


MHCO published an article on the new overtime rule on September 27, 2016 titled: "Sweet Dreams: Don’t Let Overtime Exemption Issues Become Nightmares" by J. Kent Pearson Jr.
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