A Federal judge in Texas is making a big impact from coast to coast on businesses that have salaried employees making less than $45K per year. The overtime pay rules that were slated to go into effect on December 1st have been put on an indefinite hold as the court figures out whether the new rules are legal. The indefinite hold is the result of an emergency preliminary injunction that was ordered at the request of 21 states that have joined together to block the new rules from taking effect.
The challengers to the new rules assert that the Department of Labor overstepped their authority in revising the overtime rules. The new rules would have effectively made all employees who are currently salaried and make less than about $45K per year eligible for overtime pay. Currently, the overtime pay rule applies only if a person's salary is less than approximately $23K per year or $455 per week.