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The Department of Labor issued new rules that
were supposed to take effect on December 1, 2016,
increasing that amount to $913 per week- double the
prior threshold (approximately $47,000 per year). The
Department of Labor estimated that 4.2 million workers
exempt prior to the change would, without some
intervening action by their employers, become newly
entitled to overtime protection.
Just a week before the new rules were scheduled to
take effect, a federal judge in Texas issued an order
prohibiting its enforcement nationwide. At the time of
this writing, that order has been appealed by the
Department of Labor, and is pending before the Fifth
Circuit Court of Appeals. These recent events leave
many employers scratching their heads- some had
already adjusted their compensation policies in response
37| Rules of the Road