While employers may welcome the injunction, employers should tread carefully before rolling back announced salary increases.
On November 22, 2016, a federal judge in the Eastern District of Texas issued an injunction preventing Department of Labor overtime regulations, which were scheduled to go into effect on December 1, 2016, from taking effect. As a result of the court’s decision, these regulations will likely not go into effect prior to the inauguration of President-elect Trump on January 20, 2017. Since Mr. Trump and Republicans in Congress have attacked these rules as detrimental to the economy, the rules may never take effect (or may become effective only in a substantially curtailed form).
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