A federal district judge in Texas last week at 
least temporarily blocked the Department of Labor’s (DOL) overtime rule 
set to go into effect Dec. 1, a decision that could have a substantial 
impact on colleges and universities. 
In a last-minute development on an issue for which many campuses have
 been preparing for months, U.S. District Judge Amos L. Mazzant III 
granted a temporary injunction in response to a legal challenge filed by
 21 states and the U.S. Chamber of Commerce after the final version of 
the regulation was released in May. 
Currently, professional and managerial employees making more than 
$23,660 a year are generally exempt from federal Fair Labor Standards 
Act (FLSA) overtime regulation. Under the new rule, employees would have
 had to be paid more than $47,476 to be exempt. Those making below that 
amount would have had to be classified as hourly workers eligible for 
overtime pay, which would have impacted a wide array of non-faculty 
employees—from athletics coaches and trainers to admissions recruiters 
and student affairs officers—whose work is not well suited to hourly 
wage status. 
DOL released its proposed rule in July 2015, after being charged by 
President Obama in 2014 to revise the regulation governing exemptions to
 FLSA overtime pay requirements. Along with a number of higher education
 associations, ACE submitted comments on the proposed rule that identified a range of problems. 
The Obama administration likely will appeal the injunction. At the 
moment, the timing of further developments in the case either at the 
district court or a federal appeals court is unclear.