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Federal Judge Issues Injunction Blocking DOL Overtime Pay Mandate

POSTED ON NOVEMBER 23, 2016 BY AAFCPAS

DOL Overtime Pay Mandate Alarm ClockAs you may be aware, a federal district court judge issued a preliminary injunction blocking the U.S. Department of Labor’s new overtime pay mandate.  Employers are not required to comply with, or implement, the requirements of the Overtime Rule that was slated to go into effect on December 1.

The Overtime Rule would have radically increased the thresholds for overtime rules, and expanded the number of employees eligible for overtime pay.

The judge said the Labor Department regulation exceeded the authority granted it by Congress, which he said gave Labor the right to define which workers are considered salaried but only based on the duties they performed, not by how much they made.

AAFCPAs thinks this will be welcome news for many business owners who had concerns about the economic impact of the rule, which would have had a major impact on business decisions like hiring, expansion, offering new benefits or more flexible work arrangements for employees, and may have possibly led to reductions in workforce.

If you have any questions, please contact your AAFCPAs partner.

 

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