Federal Court Blocks Enforcement of New Overtime Rule

November 22, 2016

On November 22, 2016, the United States District Court for the Eastern District of Texas issued a preliminary injunction, blocking implementation of the new Rule nationwide, pending futher review. The court ruled that the state plaintiffs have established a prima facie case that the Department’s salary level under the Final Rule and the automatic updating mechanism are without statutory authority. It is unlikely the matter will be resolved before January 20, 2017, the date a new administration steps in. Consequently, the future of the Rule is very uncertain. Read more about the Rule and the order blocking it here.

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