Department of Labor to appeal injunction of overtime rule

Department of Labor to appeal injunction of overtime rule

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

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December 2, 2016
Industry News Legislation

The Department of Labor has filed a notice to appeal an injunction from a Texas federal judge that halted the Dec. 1 implementation of new overtime rules.

The department filed a notice of appeal Thursday in hopes of moving ahead with the new rule, which have more than doubled the threshold for overtime eligibility from $23,660 to $47,476. And for the first time, employers would have been able to meet up to 10 percent of the salary level with bonuses and commissions.

The rule was meant to put more money in the pockets of middle class workers or give them more free time, according to the DOL.

Last month, 21 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.”

President-elect Donald Trump, who takes office Jan. 20, has vowed to roll back business regulations and has called the rule an overreach of power by the Obama administration. If the court of appeals does not lift the injunction before he is inaugurated, many believe that the legislation will die.

Green industry businesses have been working to comply with the new regulations, but now the overtime rule faces an uncertain future.