Judge Blocks Upcoming Overtime Rule

Many businesses and associations are cheering the federal judge in Texas who issued a preliminary injunction against a Department of Labor overtime rule that would have nearly doubled the salary threshold for overtime pay, making many more workers eligible for overtime. “Congress’ lack of action affirms its intent to exempt some work from overtime protections, and to let the secretary of Labor determine how to do it”. The new regulation, scheduled to take effect on December 1 would raise the salary threshold for overtime pay from $23,660 to $47,476. It also defended its historical right to establish salary limits for overtime pay. The order comes after 21 states sued the agency to block the rule before it took effect. President-elect Donald Trump had promised to roll back regulations on businesses once elected.

Now there is a less disruptive path forward for California employers and workers.

Few white-collar and even blue-collar workers are now covered by the Fair Labor Standards Act.

Business trade associations and advocacy organizations are applauding the judgment that has blocked the overtime law.

But it wasn’t always this way. They applied to 62 percent of USA full-time salaried workers in 1975 and just 7 percent today. The new threshold would have been the first significant change in four decades.

Avitus Group based in Billings has been helping companies with the new rule.

The rules raised the amount salaried employees have to earn before they are exempt from the overtime pay rules. Clem said he doesn’t have many employees who would be affected.

The injunction is only temporary until the judge can issue a complete ruling, but observers say the judge’s language indicates that he’ll strike the regulation down entirely. Judge Mazzant’s decision can be downloaded as a press release issued by the U.S. Chamber of Commerce here.

The Labor Department has stated that it disagrees with Mazzant’s ruling and will continue to explore other avenues to have the overtime rule passed.

I think that all employees that work over 40 hours, if you are salary or hourly, no matter in what state you live in, should be paid 1.5.