Federal Judge Invalidates Obama-Era Overtime Rule

Federal Judge Invalidates Obama-Era Overtime Rule

South Dakota Retailers Association  

A U.S. District Court judge in Texas on Thursday dismissed an Obama administration attempt to expand federal overtime rules, saying the Department of Labor relied too heavily on a salary threshold to determine exemption.

The expanded overtime rule had already been put on hold with a preliminary injunction just days before it was scheduled to take effect on Dec. 1. The late November injunction followed lawsuits filed by a coalition of 21 states and various business advocacy groups challenging the DOL’s authority in expanding the rule.

In his order, Mazzant concluded that the proposed changes to the overtime rule had overstepped Congress’ intentions in determining who should be exempt from overtime pay.

The original intent was meant to exempt workers with executive, administrative or professional capacity duties, but the Obama-era rule relied too heavily on salary without regard for job duties, Mazzant wrote.

Had they gone into effect, the changes to the overtime rule would have doubled the salary level threshold used to determine eligibility for overtime pay for hourly workers from $23,660 to $47,476 annually. An estimated 4.2 million middle-class workers would have benefited.

The changes would also have created an automatic mechanism for adjusting the minimum salary threshold every three years. In his opinion Thursday, Mazzant said those automatic increases would have been unlawful.

-Condensed from Nation's Restaurant News, August 31, 2017. Read the complete article at this link.

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