A federal judge on Tuesday blocked a Department of Labor administrative ruling. Commonly known as the new mandatory overtime pay law, the Department of Labor in conjunction with the Obama administration changed the rules relating to overtime pay for certain workers making less than $47,500. This rule was set to take effect on December 1, 2016. However, this injunction and case will determine whether the change to the overtime rules is enforceable by the Department of Labor.
The federal judge presiding over this case issued an injunction, of the new policy. This injunction stops the Department of Labor from being able to enforce this new law (temporarily), while they hash out whether the Department of Labor has the authority to classify workers by annual pay. As more information is available, we will try to provide you with updates.
For more information about the injunction and what it may mean for your business, reach out to us and check out this article .
Later this month we will cover the new overtime rules and help you determine whether you would be covered by these changes, and some measures to take to make sure you can comply with these changes (if they are to take effect).