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Judge Halts Overtime Rule

02a153xb-resizeA federal judge halted the new “overtime rule” set to go into effect on December 1, 2016. I wrote about the overtime rules and the suit filed by 21 states and 50 business groups to stop the law from going into effect, here. U.S. District Court Judge Amos Mazzant, of Texas, issued an injunction delaying the enactment of the law, which had the effect of raising the salary threshold from $26,660 to $47,892 annually.

The legal standard for obtaining an injunction is high, and requires a plaintiff to overcome the burden of “substantial likelihood of success on the merits,” among other elements. The plaintiffs argued that the new rules overstepped the government’s authority and while the litigation will continue, there is a strong indication the Court will agree.

The law already had a questionable lifespan with the election of Donald Trump as president, but nevertheless, companies have been preparing for its enactment. Retail and restaurant industries in particular lobbied that this law would have negative effects on business. For now, the rules will be delayed as the case makes its way through the litigation process and the Department of Labor considers its next steps.

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