Client Alert: Texas Judge Issues Preliminary Injunction Blocking DOL’s New Overtime Rule

Earlier this year, the U.S. Department of Labor issued its final rule increasing the salary requirement for the white-collar exemptions from the overtime pay requirements of the Fair Labor Standards Act. The new rule was set to become effective on December 1, 2016 but, late yesterday, U.S. District Judge Amos Mazzant enjoined enforcement of the rule nationwide, finding that the rule raises the minimum salary level to such an extent that it supplants the law’s duties test for exempt employees and creates a de-facto salary-only test. Accordingly, employers are now free to disregard compliance with the rule until further developments occur.