News

Overtime Pay Rule Temporarily Halted by Federal Judge

White-collar overtime, FLSA, overtime pay,

 

A judge in Texas has temporarily blocked a Department of Labor (DOL) plan to boost overtime pay for workers. The Obama administration plan was set to take effect on December 1 and would have required new overtime pay standards for approximately 4 million workers.

The federal court judge placed a temporary injunction on the Fair Labor Standards Act regulations ruling, “The Department (DOL) exceeds its delegated authority and ignores Congress’s intent by raising the minimum salary level such that it supplants the duties test.” The judge was ruling on a suit brought by 21 states that sought to stop the regulation from taking effect.

The law would have raised the threshold for overtime eligibility from $455 per week to $913 or $47,476 per year. For now, these changes will not go into effect leaving the current overtime pay structure in place. Consequently, employers are not required to comply with the new regulations, which called for overtime pay for employees earning less than a minimum salary of $47,476.

For expanded coverage of the ruling, read the following article by Forbes.