On November 22, 2016, a federal judge in Texas issued a preliminary injunction halting implementation of the U.S. Department of Labor’s new federal overtime rule, which was set to take effect on December 1, 2016 nationwide.
The new overtime rule would have:
- Increased the Fair Labor Standards Act’s (FLSA’s) salary threshold for certain exempt employees (from $23,660 to $47,476 per year).
- Provided for salary threshold increases every three years.
This decision means that the new Overtime Final Rule did not take effect on December 1, 2016, and is currently on hold.
Instead, the FLSA’s existing minimum salary threshold, of $23,660 per year, for certain exempt employees will continue to apply while the court reviews the merits of the proposed case. The new Overtime Final Rule could still be implemented later on, and we will communicate updates and/or changes to Justworks customers as we know more.
Where can I find more materials on the halted Overtime Final Rule?
Employers can call their information and helpline, available 8 a.m. to 5 p.m. in their time zone at 1-866-4USWAGE (1-866-487-9243).
You can also find DOL guidance on the final rule here.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.