© Copyright ClearPath Benefits

DOJ to appeal overtime ruling

Great article from BenefitsPro by Jack Craver

The Obama administration is not giving up on its overtime rule just yet.

The Department of Justice is appealing an injunction placed on the rule by a federal judge, which prevented the rule from going into effect on Dec. 1, as planned. The injunction came in response to a suit challenging the rule by 21 states, led by Texas and Nevada.

“That injunction was granted to some large businesses and Republican governors who had colluded to try to disrupt the implementation of this rule,” says White House spokesman Josh Earnest, according to NPR. “And essentially continue to take advantage of more than 4 million of the hardest-working Americans.”

Judge Amos Mazzant of the U.S District Court for the Eastern District of Texas ordered an injunction after deciding that the challenge to the rule was likely to succeed in a trial.

The Department of Labor exceeded its authority by raising the salary threshold for a worker to be exempt from mandatory overtime pay from $23,660 to $47,476, Mazzant writes.

The ruling suggested that federal overtime law only allows the agency to determine overtime eligibility based on job duties, not salary, Mazzant writes. The ruling thus casts into doubt the existing salary threshold as well.

If the legal battle drags on, it is unlikely that the incoming Trump administration will continue fighting on behalf of the rule in court. In the one instance in which the president-elect commented on the issue during the campaign, he said that he would like to see an exemption from the rule for small businesses.

If Trump did reverse course on the issue, it would be a great disappointment to the Republican attorneys general who brought the suit. In a statement following the announcement of the injunction, Texas Attorney General Ken Paxton, who led the suit, said that the new rule “hurts American workers.”

Congressional Republicans also denounced the rule when the Obama administration announced the final version in May. House Speaker Paul Ryan called it “an absolute disaster.”

See the original article Here.


Craver J.(2016 December 2). DOJ to appeal overtime ruling[Web blog post]. Retrieved from address https://www.benefitspro.com/2016/12/02/doj-to-appeal-overtime-ruling