A District of Texas judge, Amos L. Mazzant, just blocked a new regulation for overtime rules, set to begin on the 1st of December. The United States Department of Labor had issued a change in these rules stating that beginning on December 1, 2016, employers must pay overtime to employees who earned salaries of $47,476.00 per year – a significant increase from the standing $23,660.00 rule. This significant change would require businesses to pay many employees overtime, who previously would not have been guaranteed this pay level.
Since Judge Mazzant's ruling, this new threshold regulation has been halted. He questions the Department of Labor's authority to regulate this threshold. The Department of Labor is now expected to challenge the injunction soon. At this time, employers can continue to pay overtime based on the current threshold of $23,660.00. There is still a potential that this regulation will come into effect in the months to come.
We will keep you updated on the changes- stay tuned!