Nonprofit Resources


Judge Delays Implementation of New Overtime Rule

On November 22, 2016, Texas Federal District Court Judge Amos L. Mazzant III issued a preliminary injunction temporarily delaying the implementation date of the new Department of Labor (DOL) overtime rule for executive, administrative, and professional employees scheduled to go into effect on December 1, 2016. You can read the full text of the court’s ruling here.

What does the ruling mean? The jury is still out on the long-term effect. The DOL can appeal the judge’s ruling and it is uncertain whether such an appeal would be successful. The new Trump administration could elect to forgo an appeal and let the court’s injunction stand. This eleventh-hour injunction has left things in a state of flux.

What should you do? This too is unclear. If you have already announced raises to bring affected employees above the new rule’s salary limit, you should consult an employment law attorney in your state for any potential legal issues that may arise from withdrawing a promised raise. Similarly, you should thoughtfully approach adjusting changes you have already made related to time tracking, since the ultimate fate of the rule is unknown. If you have not rolled out any changes, you may at least have a reprieve before you need to make any adjustments.

At the end of the day, there is still much we don’t know and we encourage you to stay tuned. Please contact us with any questions.

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