Responding to a legal challenge filed by Associated Builders and Contractors (ABC) and a coalition of business groups, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction blocking the U.S. Department of Labor’s final overtime rule from taking effect Dec. 1. The rule would have doubled the minimum salary threshold for employees who are exempt from overtime pay and automatically increased it every three years. According to ABC, the injunction “will protect employers from being forced to speculate which of their employees may be considered non-exempt under a salary threshold that could change in the middle of a multi-year construction project.”
U.S. District Court for the Eastern District of Texas issued a preliminary injunction blocking the U.S. Department of Labor’s final overtime rule from taking effect.
