New FLSA Rules on Hold

On November 22, a federal judge for the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction on the Department of Labor’s new overtime rules, which were slated to go into effect in just over a week on December 1, 2016. The judge ruled that the Department of Labor (DOL) likely overstepped its rulemaking authority by raising the salary threshold as high as it did and by implementing the automatic increase every three years.

What this means now:
1. The effective date of the rules has been delayed indefinitely.
2. Employers may choose not to implement the changes they had planned for Dec. 1 compliance.
3. The new rules have not been thrown out or invalidated — at least not yet.