Attorney Steve Sack Comments on Federal Court’s Ruling against Overtime Rule

Employers may be breathing a temporary sigh of relief after a federal judge in Texas blocked a U.S. Department of Labor rule that would have raised salary limits for overtime pay, saying the rule was unlawful. That rule, which was supposed to take effect Dec. 1, is now on hold, and may prompt some workers into a state of wage­and­hour limbo.

Many employers spent months gearing up to comply with the rule, which stated that employees earning under $47,476 but working more than 40 hours a week would qualify for overtime pay of time­and­a­half. Previously, the salary threshold in New York was $35,100.

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