New Overtime Rules Blocked

November 23, 2016

Yesterday a  Federal Judge in Texas issued a nationwide preliminary injunction blocking the new overtime rules scheduled to take effect on December 1.   These rules would have increased the minimum salary for most  exempt employees to $47,476.  As a result of this injunction, the minimum salary for exempt executive and administrative employees in New York will continue at $35,100.

The decision indicates that it is likely the Judge will ultimately issue a permanent injunction.  The appeal from this action would be to the Fifth Circuit Court of Appeals.  This is a traditionally conservative court, and it is highly probable the injunction would be affirmed.  Any appeal from that decision would be to the Supreme Court.  It remains to be seen whether the Trump administration would  appeal this action.

We will keep you informed as to all further developments.