Federal Court Suspends Enforcement of Overtime Pay Rule; Proceedings Continue

The U.S. District Court of Eastern District of Texas has issued a preliminary injunction to prevent the U.S. Department of Labor's (DOL) overtime rule from taking effect as planned on December 1, 2016. Under the rule, which DOL finalized on May 18, 2016, overtime pay for working more than 40 hours in a week was required for executive, administrative, or professional employees making up to $913 per week, or $47,476 per year (see the June 3, 2016, and July 17, 2015, Issues in Continuing Care Risk Management). The previous threshold was $455 per week, or $23,660 per year. The rule would also automatically update the threshold every three years.