Like the rest of the country, the Virginia small business community has been anxiously planning for the Department of Labor’s new overtime rules to go into effect on December 1, 2016–the basic effect of which would be to increase the number of existing employees eligible for overtime pay if they work more than 40 hours in a week and force employers to significantly increase compensation levels to meet the new threshold for an “exempt” employee to escape application of the new overtime rule. The new overtime rules would potentially impact millions of employees across the U.S.
Judge Mazzant of the US District Court for the Eastern District of Texas granted the request of a preliminary injunction on Tuesday afternoon in a suit originally filed by the Attorney General for the State of Nevada challenging the new overtime rule ((State of Nevada, et al v. Dept. of Labor, et al, Dkt. No. 4:16-CV-00731, Nov. 22, 2016).
What does this mean for Virginia entrepreneurs and business owners? This means that enforcement of the new overtime rules will be delayed until the case can be fully litigated. Whether the delay is temporary or permanent will depend upon the ultimate outcome of the case, but it does provide relief from the fast approaching deadline of December 1, 2016. Stay tuned!
Leave a ReplyWant to join the discussion?
Feel free to contribute!