U.S. District Judge Amos Mazzant of Sherman, Texas, granted an injunction yesterday blocking the Department of Labor’s (DOL) overtime rule released earlier this spring. The rule promised to make dramatic changes regarding overtime pay for white collar workers under the Fair Labor Standards Act (FLSA). Namely, the rule, which was set to take effect December 1, 2016, would have made it more difficult for employers to classify employees as exempt from overtime requirements. The DOL estimated that 4.1 million salaried workers would have become eligible for overtime when they worked more than 40 hours in a week.
The rule is now in a state of limbo while the DOL evaluates its options moving forward. As an employer, whether or not you already have begun preparing for the new rule, it is important to talk with your legal counsel and tax advisors for the appropriate guidance.
Cohen & Company is not rendering legal, accounting or other professional advice. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts and circumstances.