Overtime Rule Delayed, But Not Reversed: The Impact So Far

In May of 2016, the U.S. Department of Labor announced that it would raise the salary threshold set by the Fair Labor Standards Act, above which workers are ineligible to receive overtime pay — more than doubling it from $455 a week ($23,660 a year) to $913 a week ($47,476 a year). Employers had up until December 1 to prepare for the new rule by raising salaries or taking other measures to defray costs. However, on November 22, just nine days before the rule was set to take effect, a federal judge issued an injunction blocking the implementation of the rule, raising the prospect that the courts will eventually strike down the rule change. From the legislative and executive sides, too, the rule faces an uncertain future under the Trump Administration.