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November282016
Judge Blocks New Rules for Overtime Wages

Berdon Tax Team
11.28.2016 | Client Alert Update
Just days away from a December 1, 2016 implementation of new overtime regulations, a federal judge has issued a nationwide injunction, bringing the process to a halt.1

The new regulations would have raised the salary limit for workers to automatically qualify for overtime pay from $23,660 to $47,476 – updated every 3 years based on wage growth.

In his ruling, the judge viewed the Obama administration as exceeding its authority by significantly raising the overtime salary limit. The injunction is temporary, and it is reported that the Department of Labor is considering an appeal even in the face of an incoming Trump Administration.

Berdon will continue to monitor for developments. For details on the suspended regulations, click here.

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1 Civil Action 4:16-CV-00731 United States District Court Eastern District of Texas Sherman Division. Judge Amos L. Mazzant III.