New Overtime Rule Temporarily Blocked

November 29, 2016

Sherman, TX

On November 22, 2016, U.S. District Judge Amos L. Mazzant III issued a preliminary injunction which temporarily blocks the implementation of President Barack Obama’s executive order to adjust overtime rules. You can read about the effects of the executive order in one of our previous articles (http://grlcpa.com/changes-to-overtime-pay-requirements-for-salaried-employees/). The injunction is in place until the courts can determine the legality of the executive order. Until that time, overtime rules remain unchanged. Judge Mazzant issued the injunction in response to two separate suits filed against the Department of Labor (DOL) by a group of 21 states and another group of 51 business organizations. The courts combined these suits given their similarities.

If the DOL is successful in defending the order’s legality, it may be a hollow victory. President-elect Donald Trump vowed to “cancel every unconstitutional executive action, memorandum and order issued by President Obama” within his first 100 days of office. Be sure to check our news page for future developments.

Written by Chad Bullington, CPA