Judge suspends overtime expansion rule

Judge suspends overtime expansion rule

The overtime pay hike for 4.2 million workers faces an uncertain future.

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November 23, 2016

A Texas federal judge blocked the Department of Labor rule that would have made millions of Americans eligible for overtime pay on Tuesday. The decision by U.S. District Judge Amos Mazzant grants a preliminary injunction on the rule that would have more than doubled the threshold for overtime eligibility from $23,660 to $47,476.

Lawn care and landscaping companies across the country have made changes to salaries and wages in preparation for the rule that was set to go into effect Dec. 1.

Twenty-one states and a coalition of business groups filed two separate lawsuits to overturn the regulation, alleging that the government had overstepped its authority. Mazzant wrote in his order that in setting the new salary threshold, “the department exceeds its delegated authority and ignores Congress’s intent.”

The Department of Labor issued a statement saying that it is considering its legal options. “We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans,” the agency said.

Even without the injunction, the rule faced uncertainty as President-elect Donald Trump has vowed to roll back business regulations. With a Republican-controlled Congress and the new president taking office in less than two months, many believe the legislation will die.

This means that anyone on your payroll who receives a salary and is exempt under the Fair Labor Standards Act does not need their salary raised to be exempt from overtime.