Urgent Update: Department of Labor Overtime Pay Ruling Blocked

The last few months we have been keeping you in the loop about the Department of Labor’s updated policy on overtime pay. You may have seen in the news last week that a federal judge in Texas has blocked this ruling.

What does this mean?

The new overtime pay policy will no longer take effect on December 1st. It would have required employers to pay employees making under $47,476 per year at a rate of time and one half their regular hourly pay, for all hours worked over 40 per week. With the change currently in limbo, you are not required to make any changes to your overtime policy before December 1st.

After this ruling was announced back in May, many businesses and special interest groups filed suit. They claimed that the ruling places undue burden on them and that they weren’t given sufficient time to comply before the implementation date. U.S. District Judge Amos Mazzant in Sherman, Texas agreed and granted their motion for a nationwide injunction.

What’s next?

The Department of Labor has the option to appeal to the New Orleans, Louisiana-based 5th U.S. Circuit Court of Appeals, but most likely the results will not change. President-elect Donald Trump has also voiced opposition to the ruling. Therefore, it would likely be withdrawn under the new administration.

As more information becomes available on the ruling, Cray Kaiser will continue to update you. Please call us at 630-953-4900 if you have any immediate questions.