…places a hold on the new rules regarding…
A federal judge in Texas issued an injunction putting on hold the new Department of Labor rule increasing the threshold for paying overtime. The judge concluded there was a reasonable likelihood (I don’t quite appreciate the technical description so will use casual wording) that the lawsuit by 21 states and a lot of businesses would succeed. He also concluded the rule could cause irreparable financial harm. Thus, he issued the injunction, which applies nationwide.
One of the main arguments for requesting an injunction is the assertion that significant increase from $23,660 to $47,476 for exemption from overtime exceeds the DoL authority by changing the congressional requirement. Argument is this changes a rule which is task based and salary based into what is essentially a salary-only test. The judge decided further hearings are needed on the claim that the DoL does not have authority to change FLSA into a salary-only test.
Well, that is my thumb nail description of the injunction.
I am not able to and cannot give you advice on how to deal with the rule which otherwise goes into effect December 1. Please sort out for yourself how to handle this for your organization.
Please work through your ow assessment of how the litigation will likely proceed with a change in administration this upcoming January.
If you are already in the midst of making changes to comply with the new rules, the last article below suggests taking some time to sort through what is best for your organization. Article suggests it might not be healthy to merely scrap your plans or undoing whatever changes have already been made.
Here are a few articles for your background reading:
- Wall Street Journal news report – Federal Judge Issues Nationwide Injunction Putting Overtime-Pay Regulation on Hold
- Church Law & Tax – New Overtime Pay Rules Put on Hold
- Wall Street Journal editorial – Tom Perez Strikes Out
- CPA Practice Advisor – What Comes Next for Overtime Ruling