Federal Court Issues Nationwide Injunction Putting New Overtime Regulations On Hold
In a surprising -- many would say shocking -- development, yesterday Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas issued a nationwide injunction barring implementation of the U.S. Department of Labor's new rules narrowing the scope of the Fair Labor Standards Act's minimum wage and overtime pay exemptions for executive, administrative and professional employees that were scheduled to go into effect on December 1. The new rules would have dramatically increased the salary threshold for exempt status from $455 per week ($23,660 annually) to $921 per week ($47,892 annually). In addition, the Department of Labor adopted an automatic updating mechanism whereby the minimum salary level for exempt status would increase every three years, with the first increase slated for January 1, 2020, so as to maintain the threshold at the 40th percentile of weekly earnings of full-time salaried workers in the nation's lowest wage region, currently the South. Now everything is up in the air.