Overtime Law in Limbo

On November 22^nd, a federal judge in Texas granted a preliminary injunction against the U.S. Department of Labor (DOL) rule change on overtime regulations, which were to take effect on December 1^st, 2016.

For a description of the rule, please see our blog: More Time Tracking Requirements: The New Overtime Pay Rule.

What does this mean for employers?

Wasted time getting ready for the law, and confusion about what to do next. This is particularly tough on small businesses, but it’s a real pain, no matter how big the enterprise.

Here’s what happens next...

The preliminary court injunction must first become an official injunction, which will require additional court hearings within the next 60 days.During that process, the Obama administration could decide to appeal the judge’s decision to the U.S. Court of Appeals for the Fifth Circuit, which would have jurisdiction for this case. The DOL has said it “strongly disagrees” with the court’s decision, and is considering all of its legal options.

In other words, this will take months to settle. Meanwhile, the incoming Trump administration will likely add its opinions.

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