Employers can delay moving forward with making changes to comply with the Department of Labor’s (DOL’s) new overtime rule that was set to go into effect December 1, 2016. In a surprising decision, a federal judge for the United States District Court of the Eastern District of Texas issued an emergency preliminary injunction blocking implementation of the DOL’s final rule. The court’s injunction applies nationwide.
The preliminary injunction only delays the effective date of the new regulations until the Court makes a final determination. However, the Court’s injunction may allow the new Presidential administration to modify or repeal the rule. We will continue to monitor this developing situation and keep you posted on any changes.