Tue September 19, 2017

A federal judge in Texas permanently struck down the Obama Administration’s overtime rule on August 31. The rule would have extended mandatory overtime pay to more than 4 million U.S. workers and more than doubled the annual salary threshold from $23,660 to $47,496 to determine whether an employee is hourly or salaried. U.S. District Court Judge Amos Mazzant from the Eastern District of Texas issued a nationwide injunction on November 22, 2016 blocking the rule from implementation until a final decision could be made. The Obama Administration had filed an appeal weeks before President Trump’s inauguration. In June, the Trump Administration asked a federal appeals court to uphold the November decision. In the end, Judge Mazzant made the final ruling agreeing with the original challenge from business groups and 21 states that the Department of Labor (DOL) had exceeded its statutory authority.

The Trump Administration’s DOL is seeking input from the public on how it should move forward with a new rulemaking to replace the regulation put forward by the Obama Administration. See here for information on how your company can offer input. Comments are due by September 25.