Overtime Ruling Delayed

Remember that time we told you about the new overtime ruling and why you need to care? (If you need a refresh, go here)

Well before you put everything into action, you may need to pump the brakes.

On November 22, Judge Amos L. Mazzant III, a judge in the U.S. District Court for the Eastern District of Texas, delayed the new salary level threshold for overtime pay.

What?

As a reminder, earlier this year, the U.S. Department of Labor updated its overtime regulations. That update more than doubled the salary level for employees to be exempt from overtime pay. Prior to the update, the overtime pay threshold was $23,660 annually. Under the new ruling, it’s now $47,476 annually.

This means that an estimated 4.2 million U.S. workers who previously were not required to receive overtime will now be eligible for overtime.

Cue some unhappiness.

So why is there a delay?

In October, several states filed a request for a preliminary injunction. This basically means they challenged the Final Rule put in place by the U.S. Department of Labor. And Judge Mazzant granted their request.

What does this mean for me?

The most immediate consequence will be that the new overtime ruling will no longer take effect on December 1. Instead, there will be time for further court hearings and discussions on the Final rule.

In other words, we all have to stay tuned. But for now, the current ruling is still in effect. We’ll keep you posted as things progress.

A version of this post first appeared on eidebailly.com.

 

One comment on “Overtime Ruling Delayed

  1. […] with this idea, and challenged this new ruling. Because of this challenge, the changes were put on hold. As of now, there isn’t any news on when and if this ruling will move forward, but if it does, we […]

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