Updated Federal Overtime Rules Blocked

A federal judge in Texas granted an emergency injunction to temporarily block the implementation of a new overtime rule that was set to go into effect nationwide on Dec. 1.

U.S. District Court Judge Amos L. Mazzant III of the Eastern District of Texas ruled that the current minimum salary level of $23,660 annually, or $455 a week, set in 2004 to exempt certain “white collar” employees from overtime in the Fair Labor Standards Act, would remain in place until further notice.

Mazzant decided that Nevada and 20 other states satisfied all prerequisites to grant the preliminary injunction, successfully arguing that increasing the minimum annual salary level of $47,892 ($921 per week) that exempts executive, administrative and professional employees from claiming overtime was too high and would cause “irreparable harm.”

In addition to raising the minimum salary level, the updated FLSA regulation seeks to establish an automatic updating mechanism that adjusts the minimum salary level every three years, the first of which is set to occur on Jan. 1, 2020. Mazzant ruled that the Department of Labor has no such authority.

Last modified onWednesday, 23 November 2016 13:36