New Overtime Rule Blocked by Federal Judge

A rule put in place by President Obama to expand eligibility for overtime pay to millions of workers may be on life support.

The rule crafted by the U.S. Department of Labor would have required overtime pay for about 4 million more administrative and professional workers, almost doubling the current salary threshold of roughly $23,660.

The new rule forced many small businesses to consider whether to bump workers up beyond the $47,476 threshold, limit overtime work or depend more on freelance workers.

US District Judge Amos Mazzant, in Sherman, Texas, agreed with 21 states and a coalition of business groups, including the US Chamber of Commerce that the rule is unlawful and granted their motion for a nationwide injunction.

Wednesday, Sobocinski said he was prepared to comply with the new rule if it is ultimately upheld and will conduct business as usual if it’s permanently struck down, except for a few changes he already made to comply.

The president can appeal the decision, but with President Obama pulling short time these days, he may not take it on.

The court says the Department of Labor’s rule exceeds the authority the agency was delegated by Congress. Clem said he doesn’t have many employees who would be affected.

Mendelsohn said many landscaping companies have contacted NALP in recent months as they prepared for a December 1 implementation deadline, adding: “I don’t think anyone anticipated that the court would act” in time to prevent the new regulation from taking effect.

The Labor Department said Tuesday that it was considering all its legal options.

The Labor Department even admitted as much when it was selling the rule, but claimed that reclassifications could be a good outcome because it would allow employees to “get that extra time back – which could go toward family time, the gym, classes or much more”. Overtime provisions applied to 62 percent of USA full-time salaried workers in 1975 but just 7 percent today. CT was not part of the lawsuit but would be affected by the change. This [month], the Congressional Budget Office said canceling the overtime rule would reduce employers’ compliance costs and boost profits, a point advocates refute.

Some states and businesses anxious that the proposed threshold, which would have applied nationwide, did not take into account differences in cost of living in different areas.

“It’s my understanding that President-elect Trump has not commented on the now enjoined overtime rule, but he has previously stated he supported exceptions for small businesses”.