U.S. District Judge Amos Mazzant grants preliminary injunction to suspend new Overtime “Final Rule” that was set to take effect December 1, 2016.
The Immediate Impact
“The preliminary injunction preserves the status quo while the court determines the department’s authority to make the final rule as well as the final rule’s validity”, said Judge Mazzant of the U.S. District Court for the Eastern District of Texas. This means the new rule will not take effect as planned on Dec 1st. The new overtime rule that would have raised the minimum salary of exempt employees from $455.00 a week, or $23,660.00 a year, to $913.00 a week, or $47,476.00 a year.
What Happens Going Forward?
A preliminary injunction is not permanent, it only preserves the existing rules until the court reviews the merits of the case objecting to the revisions of the new regulations. It’s recommended that employers shouldn’t assume that the new overtime rules will be permanently banned and should continue to have a plan in place to move forward if the new rules are permitted.
Mary van Balen is based out of Columbus, Ohio and is a writer for Delphia Consulting. Mary contributes to the Delphia blog on Human Resources issues and Delphia Consulting and Sage product related updates.