Federal Judge Blocks New Overtime Rules

Proposed Changes to the Standard Salary Overtime
Exemption Threshold Are Now Void

A federal judge on Tuesday, November 22^nd blocked President Obama’s administration rule to extend mandatory overtime pay from taking effect. The rule, issued by the Labor Department, was to take effect December 1^st and would have required employers to pay time-and-a-half to their employees who worked more than 40 hours in a given week and earned less than $47,476 per year. The Department of Labor has released a statement that it strongly disagrees with the Federal Court’s decision and is currently considering its options. With the upcoming changes at the federal level expected due to the recent election, there is significant uncertainty regarding the future of the Fair Labor Standards Act (FLSA) rule. We will issue updates as we become aware of them.