Federal Overtime Law Blocked

December 1, 2016 was supposed to be the day that about 4 million Americans were set to qualify for overtime pay under a new federal rule by the Fair Labor Standards Act.

The new overtime law would have doubled the annual salary threshold from $23,660, to $47,476, which determines who qualifies for overtime pay when they work over 40 hours per week.

The rule also called for adjusting the threshold’s dollar amount every three years to keep pace with inflation.

Twenty-One States as well as a coalition of businesses filed suit to have the regulations blocked from being enforced arguing that the Obama administration overstepped its authority in issuing the rule, was temporarily blocked from going into effect.

On November 22nd, a U.S. District Judge in Texas issued a preliminary injunction against the overtime rule. As a result, both employers and employees are in an unusual state of limbo. Complicating matters, with the new Trump administration ready to take over the DOL in January there is a lot of uncertainty and the new administration may choose not to exercise any rights of appeal.

For more information on the federal overtime laws, or for help with your employment law needscontact the attorneys at Maduff & Maduff.