On Tuesday, a U.S. District Court judge in Texas issued a nationwide preliminary injunction delaying the U.S. Department of Labor rule that would have dramatically increased the minimum salary threshold to qualify as exempt from overtime on December 1st. The rule would have raised the annual salary required for exempt status from $23,660 to $47,476, which was expected to result in millions of employees becoming eligible for overtime pay because their salary would not meet the new threshold.
The judge’s decision stated that the Obama administration overstepped its authority by raising the salary threshold so high that it effectively supplants the duties test that Congress intended would determine eligibility for the exemption. The injunction halts the enforcement of the rule until the government can obtain an order from an appeals court, which may be difficult in the conservative Fifth Circuit. And with Donald Trump’s presidential victory and the Republican majority in both houses of Congress, it appears unlikely that the Department of Labor will be able to revive the rule.
We will keep you updated on further developments as they occur.
