07 December 2016

US DOL appeals decision that halted new federal overtime rules

On December 2, 2016, the US Department of Labor announced that it had filed a notice to appeal to the U.S. Circuit Court of Appeals for the Fifth Circuit of the preliminary injunction to stop the Department's revised overtime rules from taking effect.

As we previously reported in Tax Alert 2016-2031, a federal judge in Texas put a hold on the federal overtime rule changes issued by the US Department of Labor (US DOL) earlier this year. The rule changes were to be effective on December 1, 2016; however, that effective date is delayed pending a final ruling in the case.

Ernst & Young LLP insights

The question still remains of whether businesses should wait for the final court decision to implement (or reverse if already in place) the changes to the federal overtime provisions.

President-elect Trump indicated on the campaign trail that he did not support the change in the overtime rules for salaried exempt employees, in particular, because of its burden on small businesses.

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Contact Information
For additional information concerning this Alert, please contact:
 
Employment Tax Services Group
Debera Salam(713) 750-1591

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Other Contacts
Employment Tax Services Group
Gregory Carver(214) 969-8377
Richard Ferrari(212) 773-5714
Kenneth Hausser(732) 516-4558
Kristie Lowery(704) 331-1884
Christina Peters(614) 232-7112
Debbie Spyker(720) 931-4321

Document ID: 2016-2070