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Judge Blocks New Overtime Rule

Federal Judge Blocks Overtime Rule

A federal judge has halted enforcement of the Department of Labor’s overtime rule until further notice. The rule, which was set to take effect on Dec. 1, 2016, would have increased the salary threshold for the “white collar” overtime exemptions to $47,476 per year.

The judge’s ruling means that employers across the country do not have to raise salaries for exempt employees to the new threshold or pay them overtime. However, an appeal of the ruling is possible. The DOL said in a statement that it was reviewing the court's order and considering any next steps.

Employers should continue to watch for news of developments related to the overtime rule. Until a final decision is reached in the case, employers can rely on existing overtime exemption rules.

CONRAD INSURANCE will continue to monitor these developments and provide updates as necessary.

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