Texas Judge Kills Obama Overtime Rule

  • Posted by: J. Kent Gervasini |
  • 9/1/17 |
  • 12:00 AM
Texas Judge Kills Obama Overtime Rule

A federal judge in Texas on Aug. 31 shot down an Obama administration rule that would have made some four million workers newly eligible for overtime pay. The U.S. Department of Labor exceeded its authority by issuing the rule, Judge Amos Mazzant said. DOL focused too heavily on the amount of money workers make, instead of their job duties, according to Mazzant (Nevada v. DOL).

The rule would have doubled—to $47,000 per year—the salary under which workers are automatically entitled to overtime pay for all hours beyond 40 a week. The decision is another nail in the coffin for the overtime rule, which Mazzant put on hold temporarily before it went into effect late last year. It also paves the way for the Trump administration to potentially issue a new rule with a more moderate increase to the salary threshold that was last updated by DOL under George W. Bush.

DOL May Consider Revising Salary Threshold to Somewhere Near $32,000/Year
Labor Secretary Alexander Acosta has indicated DOL may consider revising the salary threshold to somewhere near $32,000 a year. The agency asked an appeals court to affirm DOL's authority to take salary into account for eligibility purposes. The appeal—arguments had been slated for Oct. 3—could be off the table following Mazzant's decision.                                                                                                                                                                                 

Overtime image


Source:  Bloomberg BNA (08/31/17) Chris Opfer, American Staffing Association (ASA)

The Information Provided Does Not Constitute Legal Advice

J. Kent Staffing is a Denver temporary staffing agency and has a world-wide audience.  Employment laws and regulations vary from state to state and country to country.  Therefore, employers, temporary staffing agencies, and direct hire recruiting firms should consult their own labor or employment law attorneys with additional questions or for guidance and more information specific to their country, state and workplace.


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