Injunction Halts Implementation of New Overtime Rules

courthouse(h/t to my colleague, Timothy M. McConville, Esq.)

Earlier this year, the Department of Labor (“DOL”) issued new regulations to the Fair Labor Standards Act that would require changes to how employers classified certain employees unless compensation levels were changed.  This week a Federal Court issued an injunction blocking the implementation of these new regulations that were set to take effect on December 1st.  The injunction was issued nationwide, and therefore, prohibits the DOL from enforcing those regulations anywhere until a final resolution is reached.  The Court’s reasoning behind the injunction was that the DOL exceeded its authority in issuing these regulations.  With this injunction, many employers who had prepared to make changes as of December 1st are now in a holding pattern until the Court finally rules.  Of course, many other forces, such as a change in the administration, may also impact the implementation of these regulations.  Thus, if you are an employer who is subject to the Fair Labor Standards Act, you should reach out to your professional advisor to determine the impact this ruling has on your business.  #overtimerule #businessplanning #DOLenjoined #FLSA @bgnthebgn