Judge Halts Overtime Ruling due to go into effect 12/1/16
On Tuesday, November 22, U.S. District Judge Amos Mazzant of the Eastern District of Texas issued a temporary injunction to stop the new regulation to the Fair Labor Standards Act. This regulation was set to go into effect December 1st and per the NFIB, was expected to affect employees in nearly half of all small businesses.
Judge Mazzant's ruling will give time for the courts to determine if the Department of Labor was correct in raising the salary limit for exempt employees (not owed over-time) from $455 a week (23,660 per year) to $913 a week ($47,476 per year).
Said Judge Mazzant, "Due to the approaching effective date of the Final Rule, the Court's ability to render a meaningful decision on the merits is in jeopardy. A preliminary injunction preserves the status quo while the Court determines the department's final authority to make the Final Rule as well as the Final Rule's validity." He further added that the DOL exceeded the authority granted to it by Congress.
To read more please check out the following NFIB article.