Last week, a federal judge issued a preliminary injunction halting the U.S. Department of Labor's (DOL) controversial Overtime Rule from taking effect nationwide on December 1. NLBMDA applauds the prudent action taken by Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas. The temporary injunction means that the rule will not go into effect until the case is resolved or the injunction is lifted by the judge. As a result, the ruling delays the December 1 implementation from taking place as planned. The DOL will likely appeal the injunction. Currently, there is no timeline for the case to move forward.  

The emergency motion for a preliminary injunction was filed on October 12 by 21 states on the grounds that the DOL exceeded its authority by raising the salary threshold too much and providing automatic updates to the threshold without stakeholder input. The states' case against DOL has been consolidated with another lawsuit brought by 50 business groups, including the U.S. Chamber of Commerce and National Association of Manufacturers, which raised similar objections to the rule.

As part of the final rule, the salary level under which employees qualify for overtime pay would have increased from $455 per week ($23,360 annually) to an estimated $913 per week ($47,476 annually). In addition, the rule would have provided for automatic updates to the threshold every three years without seeking public comment.