A federal judge in Texas has dealt a critical blow to the Department of Labor’s planned change to the Fair Labor Standards Act (FLSA) overtime regulation, better known as the white-collar overtime provision. The sweeping change – which was expected to go into effect on December 1 – is now on hold.
The Obama Administration estimated approximately 4.2 million workers would see their annual compensation increase under the change, which would have required organizations to pay previously exempted employees who work more than 40 hours per week time-and-a-half overtime pay if they made less than $47,476 a year.
With a preliminary injunction now in place, the Department of Labor can still appeal the ruling. What does all of this mean for businesses? For one, it means more uncertainty about what the future may hold. Read More