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Federal Overtime Rule Struck Down

09/07/2017

A federal judge in Texas struck down an Obama administration rule that would have extended mandatory overtime pay to more than 4 million U.S. workers, siding with business groups and 21 states that had challenged it, Reuters reported.

U.S. District Judge Amos Mazzant in Sherman, Texas, said the salary level was set so high that it could sweep in some management workers who are supposed to be exempt from overtime protections, Reuters reported. The decision came after the same judge last year blocked the rule from taking effect pending his final decision. The Trump administration had already said it plans to make changes to the rule. The rule would have doubled to about $47,000 the maximum salary a worker could earn and still be automatically eligible for overtime pay. Reuters has more updates on this rule online.

In addition, the Department of Labor continues to try to change the white-collar exemption to the Fair Labor Standards Act’s overtime rule. The department is seeking input on how to update the exemption. Under the Obama administration, the agency released a final rule, originally set to take effect Dec. 1, 2016, that would have raised the salary floor to $47,476 annually. The rule faced multiple lawsuits, though.

The DOL is seeking comments on the 2016 revisions to the white-collar exemption regulations, including whether a standard salary level set in the rule effectively identifies employees who may be exempt and whether a different salary level would more appropriately identify such employees. The department will accept comments on this topic until Sept. 25. More information on the DOL's efforts can also be found online.


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