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Federal Judge puts the DOL's Overtime Rule on Hold

On Tuesday, November 22, 2016 Federal District Judge Amos Mazzant placed a nation-wide Preliminary Injunction on the Department of Labor's Overtime Rule, which was set to go into effect on December 1, 2016. 

On Tuesday, November 22, 2016 Federal District Judge Amos Mazzant placed a nation-wide Preliminary Injunction on the Department of Labor's Overtime Rule, which was set to go into effect on December 1, 2016.  This Preliminary Injunction prohibits the rule from being implemented until a final decision on the legality of the rule can be determined by the court.  The Overtime Rule increases the salary threshold from $23,600 annually to $47,476 for salaried employees who are eligible to receive overtime pay for time worked in excess of 40 hours in a week.  Additionally, the new rule requires that the salary threshold automatically increases every 3 years.   
 
This decision is in response to a lawsuit being filed by the Attorney General for the state of Nevada, Adam Laxalt and 20 other states who alleged that the increase would dictate wages for state employees, and that it circumvents Congressional authority.  Additionally, the lawsuit argues that this dramatic increase would put an undue strain on state government budgets.  You may view the lawsuit by clicking here.         
 
TRALA, and a wide coalition of the business community have strongly pushed back against this rule since it was released by the Department of Labor.  Specifically, TRALA had concerns about the large increase of the salary threshold which would make an estimated 4 million employees eligible to receive overtime pay, and the vague definition of what is considered work.  TRALA, and many other groups believe under this expansion of the overtime rule, employees could receive overtime pay for simple tasks such as checking their work email from home.  Additionally, this rule has forced many companies to drastically change their employees' salary and benefits packages, change employees from being salaried to hourly, and reduce employee hours to be in compliance with the upcoming rule.  
 
While this injunction does not permanently end the Overtime Rule, the delay could allow for enough time to pass for the Trump Administration and Congress to permanently end the Overtime rule early next year.  You may view the decision by Judge Mazzant by clicking here.
 
If you have any questions on the Overtime Rule please contact Andrew Stasiowski at astasiowski@trala.org or (703) 299-9120 at any time.   
 
 
 
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