Overtime Rules Scrapped, At Least For Now

E-mployment Alert

Smart Summary for Employers

  • Department of Labor’s new overtime rules scheduled to take effect on December 1
  • Texas federal district court issues a preliminary injunction, stopping that from happening
  • Long-term effects unknown for now

The proverbial eleventh hour call from the Governor, granting a pardon to U.S. businesses, has just happened. Unless you are just now emerging from a coma, you probably know that the federal district court in Texas has issued a preliminary injunction that stops the Department of Labor’s new overtime rules from going into effect on December 1. The court enjoined the implementation of the rules throughout the country, and not just in Texas.

We don’t know what this means for the long term. It is possible that the new rules could be reinstated, either later in this case or on appeal. On the other hand, many believe that it is more likely that the Trump administration will be more employer-friendly, and that these rules may be drastically minimized, if not completely abandoned.

We will have to wait and see what the future holds, but for now the overtime rules will not become effective next week. If you have already implemented payroll changes, and you are comfortable with your new compensation plans, you can certainly choose to move forward on that basis.