Employers In Limbo On Overtime Pay

Employers who have been preparing for months to comply with a major change to overtime regulations by raising salaries and implementing time-tracking tools have been in limbo since last week, when a federal judge blocked the new overtime rules scheduled to go into effect December 1.

The delay comes as the Texas judge considers whether to overturn the Obama Administration initiative meant to put more money in the pockets of 4.2 million workers and prevent employers from overworking employees for free.

The new rule published last spring by the Department of Labor more than the doubles the salary threshold for exempt employees, from $23,660 to $47,476 annually. It also sets automatic increases to the salary threshold every three years, starting January 1, 2020.

The November 22 preliminary injunction delays implementation of the rule until the judge decides whether the rule is unlawful. The injunction is a victory for 21 states which had sued the Labor Department, arguing the rule is unconstitutional. No timeline was given for the judge’s final decision.