Yesterday, the Texas Federal Court issued a preliminary injunction blocking the DOL’s new overtime rule from going into effect on December 1, 2016. Because this is only a preliminary ruling, and because of the change in the administration, it is unclear what will ultimately happen with the DOL overtime rule. The DOL is considering an appeal, and there is speculation in the media that parts of the new rule will survive. Until the future of the rule is resolved, employers who have already increased employee salaries to meet the new rule’s requirements, or reclassified exempt employees as non-exempt, should not reverse these changes. However, employers who were waiting until December 1st to take action, are now in limbo and should follow existing rules regarding criteria for exemptions until further developments in the case.
We will keep the blog updated on developments.