Department of Labor's Overtime Rule- Temporary Injunction Issued

How will this effect you and your business?

Published Wednesday, November 23, 2016

November 23, 2016 (Lufkin, TX)... The Lufkin/Angelina County Chamber of Commerce was one of 41 chambers across the country that joined into a lawsuit to protect the interest of the business community in Angelina County by preventing the Department of Labor’s overtime regulation from taking into effect. Yesterday, November 22, 2016, a federal judge issued a temporary injunction that blocked the changes to the new regulation by the Department of Labor.

If implemented, this higher salary would have meant many employers would have to either increase their employees’ salaries to keep them exempt, or reclassify them as hourly employees and pay them if they work more than 40 hours a week. For many employers in Angelina County, this could mean a disastrous financial hit, or reducing their ability to serve their customers. 

Reclassifying employees will also mean these employees will lose the ability to set their own hours, and to work from home or use electronic technology to handle their work since that time will be compensable and tracking it will be difficult.

“Our mission is to advocate to improve the economic prosperity and the business environment in our community and this is an excellent example of us serving our members”, said Jim Johnson, President and CEO of the Lufkin/Angelina County Chamber of Commerce. “We will continue to monitor the issue and work to protect the interest of businesses in our county.”

Changes to the rule were due to take effect December 1, 2016. Additional information about the Department of Labor’s proposed salary increase and the duties tests for exempt employees can be seen below.

The case was filed by 21 states and consolidated with a lawsuit filed by a coalition led by the U.S. Chamber that included the Lufkin/Angelina County Chamber, the Texas Association of Business, several national business organizations and many local chambers of commerce. Changes to the rule were due to take effect December 1, 2016.

For more information about the Department of Labor’s new overtime rule for salaried workers, see our resources listed below: