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New Overtime Rule – Implementation and enforcement delay

As a courtesy, we wanted to let you know that a Federal Court in the Eastern District of Texas has enjoined the implementation or enforcement of the new overtime exemption rule issued by the Department of Labor that was scheduled to be effective December 1, 2016. This injunction is nationwide. This ruling means that the new rule will not go into effect at this time. Amongst other changes, the new rule would have more than doubled the minimum salary an employee had to make to qualify for certain exemptions to being paid overtime from $23,660 under the existing rule to $47,892 beginning on December 1, 2016. The exemptions affected by the rule would have included the Executive, Administrative and Professional, or so called “white collar” exemption.

A final determination of the lawsuit (or an appeal) could result in a lift of the injunction which would cause the rule to become effective. Alternatively, a future ruling could permanently prevent implementation of the new rule. It is also difficult to predict what this ruling means long-term since a new President will take office on January 20, 2017, and with this change, new appointments will be made in the executive branch, including at the Department of Labor. The new administration may or may not repeal or modify the enjoined rule.

Should you have any questions on this ruling or otherwise relating to overtime exemptions, please contact us and we are happy to help you consider the options you have to comply with Colorado and Federal overtime regulations.

[This material is intended for general information purposes only and does not constitute legal advice. For legal issues that arise or updates on the status of the law, please contact your attorney.]

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