New Overtime Rules Halted By Judge
For this week’s tips we discuss the recent injunction that may affect your employee's overtime. If this topic doesn't apply to you, please skip below to the Upcoming Events section.
Last-Minute Federal Injunction Halts Over Time Rules
Federal Judge Blocks The Obama Administration's Overtime Pay Rule before it goes into effect on December 1st.
What was the New Overtime Pay Rule?
The Rules are the result of an initiative begun two years ago by the Obama Administration to modernize overtime protection. The U.S. Department of Labor's new rules would have required businesses to pay time-and-a-half to employees who worked more than 40 hours a week and earned less than $47,476 a year, which is about two times the current salary minimum that allows an employee to remain exempt from overtime pay.
Last week, on Tuesday, November 22nd, U.S. District Judge Amos Mazzant III issued a nation-wide preliminary injunction that has put a stop to the implementation of the new overtime regulations.
The U.S. District Judge ruled in favor of the plaintiffs, which represented 21 states, who filed an emergency motion for a preliminary injunction of the law.
The states involved in the court action claimed that the new rules would have vastly increased government expenditures in their jurisdictions and required millions of dollars of additional pay by businesses in those states.
What does this mean?
For employers this means that the old regulations still apply for the time being. And for employees the new rules will not go into effect on December 1st.