Court Issues Preliminary Injunction Halting Overtime Rule
As reported by the Partnership to Protect Workplace Opportunity (PPWO), of which AMOA is a member, November 23, 2016
"As you know, the final FLSA overtime rule was set to go into effect next week on December 1, 2016. The new rule would double the salary threshold for employees to qualify as exempt from overtime pay requirements from $23,660 per year to $47,476 per year. It also includes a provision to automatically update this salary threshold every three years beginning in 2020.
A lawsuit filed by 21 states challenging the new rule was consolidated with another challenge brought by multiple trade associations, including PPWO members, although the PPWO was not directly involved. Yesterday evening, the federal court judge granted a preliminary injunction of the entire rule prior to its December 1 effective date.
In issuing the nationwide injunction, the court struck down the excessively high salary-threshold and the automatic updating mechanism under the final rule. The decision is attached.
The practical impacts of this ruling are:
The court’s decision is welcome news for employers who have been struggling with the impacts of the rule—both to their budgets as well as its impact on workplace flexibility and employee morale."
To read the Court's full Memorandum Opinion and Order, click here to download.
Update on New Overtime Rule to Go Into Effect December 1, 2016
As reported in Off-the-Top, October 14, 2016
The Partnership to Protect Workplace Opportunity (PPWO) was created to serve as a unified voice in urging the DOL to closely examine the ramifications of the changes and consider less harmful alternatives.