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BREAKING NEWS – New Federal Overtime Rule Blocked by Federal Judge

If you’ve been following our blogs, you’re aware that the U.S. Department of Labor was set to increase the limit for overtime.  Previously, the law was that “white collar” workers making less than $23,660 were entitled to overtime pay, but more than that would not require employers to pay overtime.  The new rule, which was set to go into effect on December 1, 2016, would have changed that threshold to $47,465.  We knew this would have a major effect on our clients.

Reports are that the U.S. District Court in the Eastern District of Texas granted a nationwide preliminary injunction.  This doesn’t mean that the law is dead, but only that there is some delay (for now).  With the impending shift of the politics of the White House, it’s likely that the law will not go into effect as currently written.

We will have a full update in our blog next week as the situation becomes more clear, but wanted to get you this important information as soon as possible, as December 1 is right around the corner.

Chad Stonebrook is an Associate at Lardiere McNair, LLC.  To read more about our firm, please visit www.lmcounsel.com.

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