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Federal Judge Injunction Postpones New Overtime Rule

LOS ANGELES, CA - The scheduled Fair Labor and Standards Act (FLSA) overtime rule changes have been delayed due to an injunction imposed by a federal judge in Texas. This change comes just days before the December 1, 2016 scheduled implementation date; leaving employers scrambling for answers. For now, the overtime regulations will not change and employers may abide by the existing rules and regulations. That said, many businesses had already communicated to employees regarding pay or status changes needed to comply with the new overtime rule. Now employers must decide if they should proceed with the changes or postpone them until a final ruling is reached. Additionally, the injunction is temporary, meaning a final ruling must still be reached when the court has an opportunity to review the injunction's merit. Employers should consult with their human resources expert prior to making any business decisions in these uncertain times.


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