A federal court judge has issued a preliminary injunction, halting the implementation of the Department of Labor's new overtime rule that was set to take effect December 1. The court's actions temporarily suspend the new rule from taking effect until it can make a ruling on the merits of the case. For more information, click here
. Furthermore, the Pennsylvania Association of Chamber Professionals answers these questions:
What is the immediate effect of the court’s injunction?
Any employer who has not yet put into effect their plans to comply with the new regulation does not have to – the reason for those plans has been blocked. If employers have put compliance plans into place, they will have to decide what they want to do, but the only obligation is to comply with the previous salary threshold of $23,660/year, $455/week. Going forward, employers will not have to comply with the Department of Labor’s regulation unless something changes and they hear differently.
Is the injunction permanent?
No, the court’s action is a preliminary injunction, which means it could be lifted at a later date. The Department of Labor has also indicated their intent to appeal the decision. However, the timetable of their appeal is unclear and it’s uncertain whether they will be able to act before the Trump administration takes office on January 20.
Is Congress planning any action?
Congress is weighing its options to permanently repeal the rule. However, to be successful, any congressional action must be signed by the president. Therefore, it is unlikely Congress will act before President-elect Trump is sworn in on January 20.
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