Overtime regulations on hold until further notice

November 23, 2016 – Jim Spencer

Late yesterday afternoon, a federal judge in Texas issued a preliminary injunction on the Department of Labor’s overtime regulations that were set to take effect on December 1, 2016. The injunction is nationwide. Preliminary injunctions are immediately appealable, so we would not be surprised if the Department of Labor (DOL) files an expedited appeal with the Fifth Circuit Court of Appeals. If an expedited appeal is requested, it is conceivable that the Fifth Circuit could issue a decision prior to December 1. For now, though, the new overtime regulations are on hold, and employers do not need to comply with them. For employers that have already implemented changes (such as increasing salaries or moving employees to hourly) in anticipation of the new regulations going into effect, we recommend holding off on reversing those changes until a final decision is reached on whether  the new regulations are going into effect.

For more information about the new regulations or to discuss compliance strategies, contact attorneys James C. Spencer, Eric W. Barth, Mitchell L. Herren, David M. Rapp, or Christopher L. Arellano at 316.267.2000.