A federal judge in Texas has issued a nationwide injunction blocking the Department of Labor’s new overtime rule that was set to take effect December 1st.

The new rules require salaried employees be paid a minimum of $47,476 per year ($913 per week) to be exempt from overtime pay.  With this injunction, the minimum will stay at the current level of $23,660 per year ($455 per week).  A more detailed summary of the new rules can be found here.

The Texas judge concluded the 21 states and more than 50 business groups that sued to block the new rules stood a significant chance of prevailing and determined they would suffer serious financial harm if the rule was allowed to take effect.  The injunction prevents enforcement of the new rules until the government can win a countermanding order from an appeals court.

We will continue to follow this case and provide updates as it progress through the courts.  If you have any questions or concerns regarding the federal court case or the new rules, please don’t hesitate to contact us.