Last week we posted a reminder that the new overtime rule was going into effect on December 1st. Well, it seems things have changed.
In a ruling issued yesterday, a federal district court in Texas granted an emergency request to block the Dec. 1, 2016, implementation of the new overtime rule. The ruling is a temporary measure designed to preserve the status quo until the court can definitively rule on the legality of the proposed rule. The court found that the plaintiffs, 21 states challenging the overtime rule, “demonstrated a substantial likelihood of success” on their argument that the proposed overtime rule is unlawful. Even though the decision comes from Texas, it blocks the implementation of the rule change nationwide.
While you may be breathing a sigh of relief, the future of the proposed rule changes remains uncertain, so like so many things, employers are well advised to hope for the best, but prepare for the worst. We’ll keep you posted.
For the complete body of the decision, click here.