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Overtime Department of Labor Rule Blocked, Challenge Pending.

November 23, 2016


A new rule from the Department of Labor, which would have made millions of Americans eligible for overtime pay, was blocked by a federal judge yesterday. The decision indefinitely pushes back the December 1 effective date while the judge weighs a challenge to the requirement. An estimated 4.2 million workers were to be newly eligible for time-and-a-half wages for each hour they put in beyond 40 a week under the new rule.

What does it mean for you?

This is a nationwide preliminary injunction which means no one needs to immediately comply with the changes. The Court believes rule challengers are likely to prevail on merits. The challenge will also give the new Trump administration an easy path to withdraw new rules if it wants to.