Change in US Employee Pay Law on Hold

On Wednesday, November 23, CSI received a message from Miller Johnson, CSI’s legal counsel, regarding overtime pay:

Court Blocks New Overtime Rule: Employers Relieved of December 1 Deadline

At the eleventh hour, a federal court has relieved employers from making major pay changes to comply with the new overtime rule issued by the US Department of Labor. The rule, which was set to take effect December 1, would have raised the minimum salary for white-collar exempt employees to $913 a week.

Late Tuesday, the court issued a preliminary injunction stopping the DOL from implementing the rule. The injunction applies nationwide, to all private and public employers subject to the Fair Labor Standards Act. The DOL projected that the rule would have caused millions of exempt employees to become subject to overtime and would have required employers to begin recording their work hours.

The court’s preliminary injunction is not the final decision on this issue. The Department of Labor might choose to contest this decision through further litigation. Or, because of the upcoming change in administrations, the DOL may choose to abandon the fight. Either way, employers who were planning to change employees' pay or status to comply with the rule no longer need to do so.

CSI will provide updates as they are available. Please consult your school’s own legal advisers if you have further questions or concerns.