A federal district court in Texas has issued a preliminary injunction regarding the United States Department of Labor’s (USDOL’s) new federal overtime rule. The new rule, which is set to double the Fair Labor Standards Act’s (FLSA’s) salary threshold for employees deemed exempt from overtime pursuant to the executive, administrative, and professional exemptions, was set to go into effect on December 1, 2016.
A coalition of more than 50 business groups and a separate (but consolidated) effort by 21 states sued to invalidate the regulation, seeking expedited consideration and emergency injunctive relief. The court issued a nationwide preliminary injunction, which will preserve the status quo pending resolution of the legal challenge.