As reported by the Society of Human Resource Managers (SHRM), a federal judge in Texas blocked the Department of Labor’s (DOL’s) new federal overtime rule, which would have doubled the Fair Labor Standards Act’s (FLSA’s) salary threshold for exemption from overtime pay. The rule was scheduled to take effect Dec. 1 and would have raised the salary threshold from $23,660 to $47,476. The rule also provided for adjustments every three years to the salary threshold.
While the overtime rule will not take effect as planned Dec. 1, it could still be implemented later down the road. Employers may continue to follow the existing overtime regulations until a decision is reached.