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Effective date of Labor Department Overtime Rule (BLOCKED by injunction)

12/01/2016

The Department of Labor's Wage and Hour Division has published the previously announced final rule revising its regulations under the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay for executive, administrative, professional, outside sales, and computer employees. These exemptions are frequently referred to as the “EAP” or “white collar” exemptions. The rule also adds provisions for automatic updates every three years for its standard salary level for EAP employees, and for Highly Compensated Employee (HCE) compensation requirements. The revisions made by the rule published today will become effective December 1, 2016.

UPDATE: Overtime rule blocked by federal judge

U.S. District Judge Amos Mazzant, of the U.S. District Court for the Eastern District of Texas, has approved a motion for a preliminary injunction filed by Nevada and 23 other states, in the case of State of Nevada, et al v. United States Department of Labor, et al. The injunction blocks implementation of the Department of Labor's revised Overtime Rule, which was scheduled to become effective on December 1, 2016. The plaintiffs' suit alleges that the Labor Department exceeded its authority in setting the payroll thresholds (and the automatic updating mechanism affecting them) triggering overtime pay.

The injunction is effective nationwide, and will remain in effect pending further order of the court, which typically means until the decision is made on the underlying case.

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