Judge Temporarily Blocks DOL Overtime Rule

A federal judge has issued a preliminary injunction blocking implementation of the U.S. Department of Labor’s (DOL) overtime rule. The injunction, issued by Judge Amos L. Mazzant of the U.S. District Court for the Eastern District of Texas, puts a hold on implementation of the rule nationwide. The final rule was to go into effect on Dec. 1.

The rule would expand the pool of employees eligible for overtime by doubling the salary threshold to $47,476. A preliminary injunction is not a permanent order and is subject to modification (including an order making it permanent), or it could be vacated entirely. The DOL issued a statement saying it disagreed with the decision and was “currently considering all of our legal options.”

Prior to the injunction, PIA issued a FAQ on the impending changes.

PIA National has strongly opposed the rule due to its negative impact on small businesses, including independent insurance agencies. We are pleased with the granting of the preliminary injunction before the rule was to take effect. After the injunction was issued, PIA distributed this analysis.

PIA will continue to urge Congress to pass legislation to permanently stop implementation of the overtime rule, and we will continue to monitor judicial activities out of the Eastern District insofar as they affect the future of the rule.