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New FLSA overtime rule suspended temporarily

ExakTime |

With just over a week remaining, the new FLSA overtime rule that was scheduled to take effect December 1 has been temporarily suspended by U.S. District Judge Amos Mazzant. The injunction comes after a coalition of 21 states and business groups filed lawsuits claiming the new rule was unlawful.

Though the suspension will delay the implementation of the new rule, it does not inherently mean that it will not happen. Representatives from the Department of Labor said they are confident in the legality of the rule and are currently looking into their options.

The Details

The new rule was set to raise the maximum salary an employee could earn before losing their eligibility for overtime pay from $23,660 to $47,476, allowing millions of employees to earn additional compensation for overtime work.

Opponents of the bill say it will put a strain on businesses who would have to pay significantly more for the same work or result in employees being able to work fewer hours.

If there’s one thing to take away from all of this, it’s this:

The new FLSA Rule is not necessarily going away.

The injunction is only a temporary measure. While this means the Dec. 1 deadline is no longer true, it is possible that the injunction could be overturned on an appeal, at which point the rule will take effect.

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