Nov. 30, 2016 – On November 22, a federal district judge in Texas issued a nationwide preliminary injunction temporarily blocking the implementation and enforcement of the Overtime Final Rule that was scheduled to take effect December 1, 2016. The judge ruled that the U.S. Department of Labor exceeded its authority when it issued the “Overtime Final Rule.” The injunction only halts the new rule from becoming effective; it does not change current rights and obligations under the underlying federal wage and hour laws. Nonprofit and other employers (including churches) still must comply with existing federal and state laws regarding fair labor standards, including properly classifying employees as being exempt from or entitled to being paid overtime.
Update to FLSA Overtime Ruling
The district court will likely issue a permanent injunction, which the federal government would appeal to the Fifth Circuit Court of Appeals. However, after January 20, a new Trump Administration could reverse the federal government position on the rule.
But, for now, the overtime rule will not take effect on December 1.