A Federal judge in Texas granted a preliminary injunction that prevents the new federal overtime rules from taking effect.
As many of you know, the new federal overtime rules would have required employers to pay employees a minimum of $47,476 to classify the employees as exempt from overtime. Employers were supposed to comply starting December 1, 2016.
The judge determined that the Department of Labor exceeded its authority when creating a “salary-only” test.
As of now, the law will NOT go into effect. But it is likely that the DOL will appeal the ruling. It is also possible that the new rules will be determined by the Trump administration. We will continue to keep you updated. Stay tuned!
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