District Court Issues Preliminary Injunction on DOL Overtime Rule

A federal judge in the U.S. District Court for the Eastern District of Texas issued a preliminary injunction stopping the Department of Labor’s new overtime rule from going into effect on December 1, 2016.  The overtime rule would have required employers to increase salaries of exempt employees from $23,660 to $47,476 per year or pay overtime/grant compensatory time.  Georgia and 20 other states and more than 50 business groups filed an emergency motion for a preliminary injunction in October to halt the rule, claiming that DOL exceeded its authority by raising the salary threshold too high and by providing for automatic adjustments to the threshold.  State of Nevada et al v. United States Department of Labor et al (1:16-cv-00407).