Businesses win first round of the fight for higher pay. District Court grants preliminary injunction against new overtime rule
On November 22, 2016, a federal district court in Texas issued a nationwide preliminary injunction against the new “white collar” exemption from taking effect. But for the preliminary injunction, millions of workers would have been entitled to a higher threshold for the minimum pay they must receive in order to satisfy the minimum salary. For comparison purposes, the minimum salary threshold is still $455 per week or $23,660 per year, but under the new law, the minimum salary will be $913 per week or $47,476 per year.
If an employer does not pay otherwise exempt employees the minimum salary, then the employees would be entitled to overtime pay (1.5 times their regular rate of pay) for all hours worked over 40 in a given workweek.
However, again employers have won the first battle by receiving the preliminary injunction which kept the new law from ever becoming effective. The final result of the fate of the new overtime law is far from over though as the injunction was only “preliminary” and it has been appealed by the United States Department of Labor as can be seen here
The status of the law is a fluid situation. The appellate court may reverse the district court and the law could be retroactively applied to December 1, 2016, a permanent injunction could be issued, and appeals either way are certainly expected. If you have questions about your compensation, your right to overtime, or any other issues related to your pay, then please contact our office for a FREE consultation with an Ohio FLSA Overtime Attorney by filling out the information below or calling 1-614-949-1181.