New Overtime Ruling Delayed by Federal Court

New Overtime Ruling Delayed by Federal Court

In March of 2016 the Department of Labor (DOL) announced an update to the overtime rule, potentially reclassifying millions of American workers.  The ruling was set to raise the minimum salary threshold for exempt employees from $23,660 to $47,476 per year.  To date, 21 state attorney generals have filed motions to block the overtime ruling, finding success in the U.S. District Court in Eastern Texas.

In his dissent, Judge Mazzant (appointed by President Obama) ruled the DOL exceeded the authority prescribed to the office by circumventing Congressional rule, stating “if Congress intended the salary requirement to supplant the duties test, then Congress, not the Department, should make that change”.

According to the U.S. Chamber of Commerce had the new overtime rule gone into effect business would have been faced with over an additional $1 billion in higher labor costs and approximately $4.1 billion in annual compliance costs.  The Department of Labor may appeal the ruling; however, any further action would not be brought before a court until after President-Elect Trump is sworn into office.

The Department of Labor may appeal the ruling; however, any further action would not be brought before a court until after President-Elect Trump is sworn into office.

By | 2016-12-06T08:13:10+00:00 December 5th, 2016|News|Comments Off on New Overtime Ruling Delayed by Federal Court