Tags: obama | overtime | pay | struck down

Obama Overtime Pay Rule Struck Down

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By    |   Friday, 01 September 2017 08:37 AM

The Obama-era overtime pay rule for salaried workers was struck down by a federal judge in Texas Thursday.

U.S. District Judge Amos Mazzant, in the Eastern District of Texas, put the rule on hold in November before it was scheduled to go into effect in December, Bloomberg BNA noted. The judge wrote that the U.S. Labor Department went beyond its authority when it doubled the salary under which workers are automatically entitled to overtime pay for work over 40 hours.

The George W. Bush administration created the overtime standards in 2004, requiring employers to pay most salaried employees overtime if they made less than $23,500. In 2015, then-Labor Secretary Thomas Perez doubled the threshold to $47,000, saying it was the easiest way to put more money in workers' pockets and avoid some of the uncertainty that comes with the "duties test," Bloomberg noted.

Mazzant, an Obama appointee, though, said the Labor Department improperly looked at salaries instead of job descriptions when determining whether a worker should be eligible for overtime pay, according to The Hill newspaper.

"This opinion is not making any assessments regarding the general lawfulness of the salary-level test or the department's authority to implement such a test," Mazzant wrote, per Bloomberg. "Instead, the court is evaluating only the salary-level test as amended by the department's final rule."

The ruling was hailed by some in the business community, The Hill said.

"The Department of Labor under the previous administration overstepped its authority in making changes to the federal overtime rule," the Restaurant Law Center, which represents the restaurant industry, said in a statement, according to The Hill newspaper.

"Today's decision to invalidate the rule demonstrates the negative impacts these regulations would have had on businesses and their workers. We will continue to work with (the Department of Labor) on behalf of the restaurant industry to ensure workable changes to the overtime rule are enacted," the group's statement continued.

The current Labor Department hinted in June that it had already planned on reconsidering the rule. Labor Secretary Alexander Acosta said the department may consider a new threshold at close to $32,000 a year, Bloomberg reported.

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The Obama-era overtime pay rule for salaried workers was struck down by a federal judge in Texas Thursday.
obama, overtime, pay, struck down
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2017-37-01
Friday, 01 September 2017 08:37 AM
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