New overtime regulations under the Fair Labor Standards Act set to go into effect on December 1, 2016, have been halted by a federal court in Texas. In State of Nevada v. U.S. Department of Labor, the court granted a preliminary injunction in favor of a group of twenty-one states who had opposed the regulations. The injunction maintains the status quo until a final decision is reached in the case at a later date.

What this means for employers is that the present rule remains in effect, and employers are not required to compensate salaried employees for overtime if they are paid a minimum of $455 per week and who perform executive, administrative, or professional duties. The new regulations would have raised the minimum salary to $921 per week. The regulations may be implemented at a later date should the court ultimately find in favor of the Department of Labor. Alternatively, the regulations may be repealed or modified under the incoming administration.