New Employee Overtime Rule Enjoined

As we previously reported, the DOL’s new overtime rule that requires, among other things, raising the minimum salary requirement for exempt employees from approximately $23,000 to over $47,000 was to take effect December 1.  On December 22, 2016, the rule was enjoined nationally by a federal judge. As a result, employers will no longer need to raise these employees’ salaries on December 1 to maintain their exempt status.
Although the Obama Administration is expected to file an expedited appeal, a decision by the court of appeals could take some time. If the appeal is pending when the new administration takes office, the government, given the President-elect’s statements about limiting government regulation, could decide to withdraw its defense of the rule and drop any challenge to the injunction.
Read the Employment Group’s guidance for employers in light of the injunction.