HR News, Payroll, Texas

Breaking News: November 22, 2016 – Texas Judge Blocked Federal Overtime Rules

Oh my! Today – November 22, 2016 – a judge in Texas blocked federal overtime rules that would have opened up the way for pay increases and overtime pay for millions of workers across the nation. The new rule was set to go live on December 1, 2016. Read on for the details…

The rule change was set to raise the amount salaried employees would have to earn before they could be exempt from the overtime pay rules. Right now, salaried employees earning more than $455 per week ($23,660 per year) are not eligible for overtime. Under the new rules, salaried employees would have to earn more than $913 per week ($47,476 per year) before employers could deny them overtime gavelpay.
Texas 21 other states and a coalition of business groups sued to block the changes, questioning the Department of Labor’s authority to raise the salary threshold. Judge Amos L. Mazzant, III, of the U.S. District Court for the Eastern District of Texas in Sherman, heard the case. During arguments, he had called the rule change “radical” and “drastic.” Today he deemed the rule change unlawful.
The nationwide injunction removes the requirement for employers to implement the new overtime rules on December 1st, 2016.After obtaining the injunction, Attorney General Paxton said:

“The Obama administration proved true to form when it ordered the Department of Labor to revise its interpretation of the Fair Labor Standards Act. Namely, the administration assumes that through force of will alone, it could order a new economic reality into existence. The finalized overtime rule hurts the American worker. It limits workplace flexibility without a corresponding increase in pay and forces employers to cut their workers hours. All in all, it exchanges the advantages of negotiated benefits, personal to each worker, with a one-size-fits-all standard that only looks good in press statements. Not on my watch.”

What Next?

The injunction halts enforcement of the new federal overtime rules until the government can win a countermanding order from an appeals court. With the Republican sweep over control of both houses of Congress, the DOL will be facing quite a battle to win back the ability to require implementation of the now blocked overtime rules.

All I can tell you is – Stay Tuned! I will continue to update you all as changes occur. In the meantime, no one is trying to block the  new I-9. So, move forward on your internal audits. Find and Fix the problems before the January 22, 2017 implementation date.

Until Next Time, Be Safe and Be Audit-Secure!,

Lisa Smith


Lisa Smith is CEO of Andere Development, LLC and Chief Content Developer at BeAuditSecure.com. Follow her on Twitter, connect with her on LinkedIn, listen to her Small Business Spoonfuls Podcast, and find more from her in Audit-Secure Authority at BeAuditSecure.com.

Log in or Register to save this content for later.