Well, it actually happened. Judge Amos L. Mazzant III of the Eastern District of Texas granted the injunction today, which will stop the new federal overtime exemption rule from going into effect on December 1, 2016 across the country.

As most of you know, the new federal overtime exemption rule, which was set to go into effect on December 1, would increase the salary threshold for most exempt employees from $455/week to $913/week. Employers have spent over a year preparing for this change. With the court’s injunction, however, the December 1 effective date is off the table.

If you have not already implemented changes based on the anticipated rule, there will be no requirement to do so on December 1. If you have already made changes, you will need to decide whether to revert to your prior practice regarding exempt employees.

Note that this is a preliminary injunction, so the new rule is not necessarily gone forever and could be back on the table again at a later date in its current form or in some other form.

Click here for a copy of the court’s order.


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