The United States Department of Labor has published a new overtime exemption rule that will increase the required pay of a salaried worker from $23,660 to $47,476. The increase is meant to put more money in the wallets of workers and boost the economy by creating spending power to the average American. The effective date of the final rule is December 1, 2016. There is also a mechanism for evaluating the overtime rule every three years to ensure that the wage rate is remaining relevant. Since the rule has not been updated in many years the salary increase is more significant.
A Federal Judge from the Eastern District of Texas has granted a nationwide preliminary injunction to stop the overtime rule that was due to go into effect on December 1. The rule put forward by the Department of Labor would guarantee that salaried workers would make at least $47,476, which is more than double currently required by law. This controversial rule will be stuck in the courts until after the January 20th inauguration which will take pressure off of the Trump administration as he will not have to risk offending anyone should he decide to change the rule. The Department of Labor can file an appeal, but considering how long it takes to appeal an injunction, it is safe to say that the rule will not be changed for a while.