A Federal Judge in Texas issued a national temporary injunction on implementation of the Obama Administration’s new overtime rule, previously set to go into effect on December 1, 2016. The Department of Labor had issued a new rule that would have doubled (to $47,476) the salary threshold for the so-called “white collar” exemption to overtime pay. The rule would also have indexed future increases in the threshold to the Consumer Price Index.
The injunction is only temporary. However, the decision by the Obama-appointed Judge signaled a strong likelihood that the court would eventually side with the coalition of business groups and state attorney generals that sued to block the regulation. In his written decision, the Judge stated that the Final Rule exceeded the Department of Labor’s authority.