Federal Judge Delays Overtime Rule

On Tuesday, November 22, 2016, U.S. District Court Judge Amos Mazzant issued an injunction delaying the national implementation of the U.S. Department of Labor’s proposed overtime rule that was scheduled to take effect on December 1. This comes in response to an emergency motion filed by 21 states and many business groups, citing that the rule was unlawful and that the Department of Labor exceeded its authority under the FLSA. Therefore, the current rule remains in effect until the court determines the Department of Labor’s authority to make the final rule, as well as the rule’s validity. 

As a result of this injunction, employers do not need to implement the FLSA overtime rule changes by December 1, 2016. If you have already implemented the changes, you may wish to maintain those changes pending the final decision.

If you have any questions or are in need of transition support, please contact Lisa Corbeille, Stephanie Ferrario, Julia Johnson, or your Wipfli Relationship Executive.