On November 22, a federal judge in Texas blocked the Obama administration’s rule that would extend overtime eligibility to over 4 million Americans. This follows 21 states who sued to block the rule before it went into effect.
This new overtime rule was announced by the Department of Labor on May 18, 2016; it stated that any salaried employee earning less than $47,476 annually would qualify for overtime pay when they worked over 40 hours a week. The current threshold is $23,660.
The rule was to go in affect on December 1, 2016. The Department of Labor is weighing options; but, for now, employers can continue to use the $23,660 threshold.