Changes in overtime regulation are afoot. Or are they? The Department of Labor (DOL) had issued new overtime regulations that were scheduled to take effect Dec. 1, 2016, and were expected to affect 4.6 million currently exempt employees—making them overtime-eligible. The new rules had significantly increased the salary thresholds, entitling employees under the new threshold to overtime pay. But days before the new overtime rules were to become effective, a Texas federal court issued a nationwide injunction blocking their implementation. And now that we have a new administration in Washington, the fate of these new overtime rules hangs in the balance. So what can we expect next?
The injunction is now on appeal. And during the pendency of the appeal, a new secretary of labor could change the landscape of the issue entirely, either by withdrawing the appeal or by issuing alternative overtime regulations. In any of these scenarios, it is far from clear what will become of these Obama-era rules.
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