Permanent Injunction Issued on Overtime Rule

Last week, a federal judge Texas struck down the Obama-era overtime rule. This ruling turns the preliminary injunction he had issued in November of 2016 into a permanent injunction.

The rule increased overtime for non-exempt employees to $913 per week ($47,476 per year) from $455 per week ($23,660 per year) and included automatic updates every three years. In his ruling, the judge found that the salary threshold was so high that it effectively eliminated the duties tests in determining whether an employee was exempt or non-exempt. The Trump administration’s Department of Labor has recently issued a request for information (RFI) to possibly guide the formation of a new overtime rule.