With the Department of Labor’s final ruling extending overtime protections to over 4 million workers schedule to take effect December, 1, 2016, a federal judge has blocked the implementation of the overtime law set by the Obama administration.
The ruling occurred Tuesday, November 22, by U.S. District Judge Amos Mazzant, in Sherman, Texas. The 20 page ruling agreed with the 21 states and more than 50 business groups that the overtime law was unlawful, the drastic increase in salary threshold was arbitrary, and businesses would suffer serious financial harm if the rule was to be to be put in effect.
Nevada Attorney General Adam Laxalt, who led the coalition of 21 states and governors fighting the rule stated:
“Businesses and state and local governments across the country can breathe a sigh of relief now that this rule has been halted…The ruling reinforces the importance of the rule of law and constitutional government.”
The overtime law would have doubled a salary worker’s maximum salary from $23,660 to $47,500 to be overtime exempt. Any salaried worker below that threshold would be eligible for mandatory overtime pay if they worked more than 40 hours in a given week.
The Department of Labor issued the following statement:
“We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The department’s overtime rule is the result of a comprehensive, inclusive rulemaking process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.”
With the Trump Administration taking office in a couple months and Republicans controlling both houses, the future of the overtime rule will remain in limbo.