Information provided by the Southeast U.S. Chamber of Commerce
Many employers have questions regarding the implications of the recent preliminary injunction blocking the Department of Labor’s overtime rule. Below is more information on the most frequent questions we’re receiving:
What is the immediate effect of the court’s injunction?
- Any employer who has not yet put into effect their plans to comply with the new regulation does not have to—the reason for those plans has been blocked. If employers have put compliance plans into place, they will have to decide what they want to do, but the only obligation is to comply with the previous salary threshold of $23,660/year, $455/week. Going forward, employers will not have to comply with the DOL’s regulation unless something changes, and they hear differently.
Is the injunction permanent?
- No, the court’s action is a preliminary injunction, which means it could be lifted at a later date. Today, the Department of Labor filed a notice of appeal. However, the timeline of the appeals court review is unclear, and it’s uncertain whether any further action will take place before the Trump administration takes office on January 20th.
Is Congress planning any action?
- Congress is weighing its options to permanently repeal the rule. However, to be successful, any congressional action must be signed by the President. Therefore, it is unlikely Congress will act before President-elect Trump is sworn in on January 20th.