Last week a federal judge in Texas halted the Department of Labor’s (DOL’s) new federal overtime rule changes. Twenty-one states filed an emergency motion for a preliminary injunction in October due to concerns about the significant increase to the exemption threshold and the requirement to increase the threshold every three years. With the judge’s decision to issue a temporary injunction, the rule will not go into effect December 1, which gives employers some reprieve on implementation. The injunction is not permanent, however, as it simply preserves the existing overtime rules until the court has a chance to review the merits of the case. Therefore, employers should continue to develop a plan of action for future changes to the overtime rules.
About the author
Nicole Eshnaur works with businesses to assist them in preparing their financial statements, planning for their tax situation, managing their cash flow and payroll needs, and forecasting their future financial needs. She can assist with accounting software consulting and training, as well as accounting staff training.