New overtime regulations on hold
A federal Texas judge issued a nationwide injunction against the new Overtime Rule, stating that the Administration overstepped its authority by raising the salary cap from $455 a week to $921 a week or $47,892 a year. The rule was set for implementation Dec. 1, 2016.
U.S. District Judge Amos Mazzant issued the order by justifying that litigation to block the new rule stood a significant chance of succeeding. “The Department exceeds it delegated authority and ignores Congress’s intent by raising the minimum salary level such that it supplants the duties test,” wrote Judge Mazzant. The Judge also argued that the Dept. of Labor must reevaluate the duties of employees to determine who should and should not be exempt, as part of the new rule.
Though the government continued to argue that the new rule is appropriate “with our modern economy,” the injunction stops enforcement of the rule until the government can overturn the injunction through an appeals court. This will also give Congress time to review the impact of the rule.
The new Overtime Rule is assumed to impact more than 4 million workers.