Restaurants get a delay of new overtime rules

overtime payroll timesheet

A federal court has delayed enactment of new overtime rules, giving the restaurant business and other industries a likely reprieve from the scheduled Dec. 1 start of enforcement. 

The injunction is temporary, leaving open the possibility the new rules could still go into effect at any time, including in the next few days. Arguments for a summary judgment in a legal challenge brought by 21 states are scheduled to begin today.

The National Restaurant Association hailed the injunction from the Eastern District Court of Texas, but underscored the possibility that the stay could be short-lived. It urged members to continue developing their plans for coping for the new requirements.

The changes set by the U.S. Department of Labor earlier this year double the income test for determining what salaried employees are exempt from overtime-pay requirements. The threshold was raised from $23,660 in annual pay, to $47,476.

Many in the industry and political world expect President-elect Donald Trump to roll back the rules after taking office.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.


Exclusive Content


Brands need to think creatively as the industry heads into a value war

The Bottom Line: Giving customers meal options they can afford will be key to generating traffic this year. But make sure those offers can generate a profit.


The Red Lobster bankruptcy is a seminal moment for the restaurant business

The Bottom Line: The seafood chain’s bankruptcy declaration was not surprising after months of closures and Endless Shrimp recriminations. But that doesn’t make it any less notable.


The White House has ideas about how all that AI on the Show floor should be used

Reality Check: President Biden issued a set of guidelines Thursday for protecting workers from the digital onslaught.


More from our partners