Late Tuesday, November 22nd, a federal judge issued an order that effectively pauses the new “overtime rules” that had been scheduled to take effect December 1, 2016. The ruling enjoins the Department of Labor from implementing or enforcing the new “overtime rules” on a nationwide basis “pending further order” of the court. It is important to remember that the ruling is not final. Rather, it is a preliminary injunction that suspends the new rule during the litigation or further order form the court.
South Carolina is one of 21 states that have joined in a federal lawsuit filed in Texas contending that the “President is trying to rewrite [the Fair Labor Standards Act].” To recap, the rule in question is actually an amendment to the FLSA’s salary basis test increasing the minimum salary amount for exempt employees from $23,660 to $47,476 annually. The proposed change, effective December 1, 2016, will amend the current rule found at 29 C.F.R. §541.600.It was proposed by the Wage and Hour Division of the Department of Labor (DOL).
On Monday of this week, the U.S. Department of Labor (“DOL”) took the next step in finalizing its proposed new overtime regulations by sending its final rule to the White House Office of Management and Budget (“OMB”) for review.
