Federal judge issues nationwide injunction to overtime regulations
Late yesterday, November 22, a federal judge in Texas issued a nationwide injunction to the Department of Labor (DOL) overtime regulations that were to take effect on December 1. FSPA has been reminding our members to be prepared for these changes that would have raised the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), along with providing automatic updates to the salary threshold every three years, based on wage growth over time.
The judge, Amos L. Mazzant III of the Eastern District of Texas, ruled that the Obama administration had exceeded its authority by raising the overtime salary limit so significantly. The ruling was hailed by business groups who argued the new rules would be costly and result in fewer hours for workers. DOL responded by saying it “strongly disagreed” with the decision and was “considering all of our legal options,” raising the possibility of an appeal in the waning days of the Obama administration.
FSPA will continue to keep its members apprised of further developments; for now, any changes on how you pay overtime to your employees have been put on hold.