We recently sent an update reminding taxpayers that new overtime regulations would become effective December 1, 2016. These regulations have now been placed on hold.
Based on a case brought before the U.S. District Court in East Texas, a federal judge ruled that the Department of Labor overstepped its authority when it increased the limits that Congress had established. The judge issued a preliminary injunction preventing the regulations from taking effect on December 1, 2016. It is anticipated that the Department of Labor will appeal the ruling.
Stay tuned for more details as they arise. Reach out to your payroll provider or one of our tax professionals with questions.