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Wednesday, November 23, 2016

Breaking News - Overtime Rule Blocked

Just before the holiday begins, a Federal Judge blocked the update to the Overtime Regulations which were to begin on Dec. 1.  The Federal Court in Texas known for its “Rocket Docket,” issued an Order on Nov. 22, which placed the updates on hold. 

The Judge concluded that the 21 plaintiff states satisfied all prerequisites for a preliminary injunction by establishing "a prima facie case" on the DOL's proposed changes being without statutory authority.  The injunction only places the changes on hold until the Court’s final decision or an appeal.  

While most employers had prepared to comply with the update, these employers now need to look at whether to undo the changes (mostly related to employee compensation changes) and how to communicate these changes to employees. Before taking action, however, employers should address this new development with an experienced employment attorney. 





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