So No New DOL Rule or What?

As you may have heard, a federal judge in Texas blocked the federal Department of Labor’s (DOL’s) new federal overtime rule, issuing a “preliminary injunction.” This was the rule that would have raised the salary threshold for exemption from overtime pay from $23,660 to $47,476. One result is that employers do not have to comply with the new rule on December 1. Employers MAY still have to comply with the rule in the future. A preliminary injunction just puts the rule on hold while the court takes the time it needs to evaluate whether the rule is legal. At some point later, the judge may rule that the new salary requirements are ok and can go into action. An injunction is the name for a court ruling that keeps the status quo and stops action; a preliminary injunction is one that comes out at the beginning of a case and is truly just preliminary. So…..keep in place all the data you may have collected in preparation for the change, and maybe even some of the changes you have already implemented. To the extent it is difficult finding enough good employees these days, taking the time to evaluate your compensation structure was time well spent. And keep your eyes open for updates.

This article is not legal advice but should be considered as general guidance in the area of employment and corporate law.  Bryan Dench, Amy Dieterich, Jordan Payne, and Rebecca Webber are employment and labor law attorneys; others at the firm handle business and other matters.  You can contact us at 207.784.3200.  Skelton Taintor & Abbott is a full service law firm providing legal services to individuals , companies, and municipalities throughout Maine.  It has been in operation since its founding in 1853.