Judge Blocks Department of Labor
Late yesterday afternoon, a U.S. Federal Judge in the U.S. District Court for Texas placed a national injunction on the Department of Labor’s new overtime rule. The new rules, with an increased salary threshold of $47,000, was set to go into effect on December 1.The injunction stops the rule from taking effect on December 1 and opens the door for a legislative solution in either the lame duck or the next session of Congress. This is a win for business, as the new threshold limit was set at an arbitrary number, which exceed all measurable rates of growth since the last increase. We congratulate the Lubbock Chamber of Commerce, Texas Business Association, the U.S. Chamber, and all of the other litigants in their success.
As a small business owner, this means you do not need to comply with the proposed rule December 1. Any legal options for an appeal of the injunction by the Department of Labor are slim, as the 5th Circuit Court of Appeals has not been supportive of previous Executive actions, and would also exceed the January 20, 2017 inauguration. In our opinion, this proposed rule is dead.Read More