Injunction Issued to Block OT Rule

November 23, 2016

A federal judge in Texas has issued a nationwide junction blocking the Department of Labor’s rule requiring overtime pay for more than 4 million new workers.

In a 20-page decision, U.S. District Judge Amos L. Mazzant ruled that 21 states and more than 50 business groups that sued to block the rule stood a significant chance of success and would suffer serious financial harm if the rule was put into effect as scheduled on Dec. 1. The Obama administration overstepped its authority by raising the salary cap below which all workers must receive overtime pay from $455 a week to $921 a week or $47,892 a year, the judge wrote.

We have linked an article from SHRM with additional information and suggested guidance here