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December 1st Deadline is Off for Now: New Overtime Rule on Hold
November 30, 2016

As you may have heard a number of states sued to try to stop the new exempt salaries from going into effect on December 1st. The United States District Court for the Eastern District of Texas has granted a preliminary injunction stopping the U.S. Department of Labor ("DOL") from implementing new overtime regulations set to begin on December 1, 2016. The current salary threshold of $23,660 for most exempt employees would have been raised to $47,476 if the new rule had taken effect. Employers had the option of raising salaries to meet the new exempt threshold or reclassifying exempt employees to nonexempt and paying overtime.  

This temporary ruling has forced a difficult decision on employers who may have already announced or even implemented salary changes based on the regulations. Moreover, the final outcome of the pending lawsuit and exempt salaries in the U.S. could depend on a number of factors, including the Court's final ruling in the pending lawsuit, a potential DOL appeal, and the stance that President-elect Donald Trump's administration will take on wage and hour issues.