EMPLOYMENT ALERT - INJUNCTION TEMPORARILY HALTS OVERTIME RULE
No one will call November 2016 dull in regard to the federal government. Just days before the new overtime rule was scheduled to become effective, on Tuesday, November 22, U.S. District Court Judge, Amos Mazzant, in Texas, granted a preliminary injunction which temporarily stops the new Fair Labor Standards Act (FLSA) overtime rule from becoming effective on December 1 throughout all 50 states. As many of you know, the new overtime rule revised the salary requirement for employees who could be exempt from overtime due to a "White Collar exemption" (Administrative, Executive, Professional.) The lawsuit heard by Judge Mazzant was a combination of two lawsuits which included a lawsuit filed on behalf of 21 states who claimed that the Department of Labor (DOL) exceeded its authority when it increased the salary requirement and by setting automatic adjustments for the salary rate every three years.
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