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New Overtime Rules Blocked

A federal court in Texas has blocked the start of a rule that would have made an estimated 4 million more American workers eligible for overtime pay next week.

According to the Associated Press, the U.S. District Court in the Eastern District of Texas ruled that, in creating the new minimum salary threshold regulations, the Department of Labor has exceeded the authority it was delegated by Congress. The DOL is considering its legal options.

The new rules were set to go into effect on December 1, and would have adjusted the “white collar exemption” and forced employers to pay overtime to salaried administrative or professional workers who make less than $47,500 per year. The previous threshold for the exemption was $23,660, which will remain in place for now.

It could fall to the new Trump administration or Congress to decide if the new rules will stand, be adjusted, or if no changes will be made.

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