With only a week before its December 1 effective date, a Federal District Court Judge in Texas has entered a nationwide injunction halting the implementation of the DOL’s new overtime regulations. In his ruling, Judge Amos Mazzant found while the DOL has authority to change the duties portion of the overtime exempt test (which were left unchanged in the recently released regulations), it did not have the authority to change the salary basis amounts. Instead, the Court held that this change should come from Congress, if at all. Accordingly, Judge Mazzant held that employers may continue to follow the current salary basis guidelines.
This ruling may provide little comfort to employers, who have already begun planning and budgeting with the DOL’s new regulations in mind. However, for employers who want to continue to follow the current salary basis test of $455 per week and $23,660 per year, they may do so. An appeal of this order is likely to be forthcoming, the effect of which is not known at this time. We will continue to keep you updated on this matter as more information becomes available.