A federal judge in Texas has blocked the U.S. Department of Labor’s final overtime rule. The November 22 decision by U.S. District Judge Amos Mazzant III in Sherman, Texas, is considered a victory for 21 states and dozens of business groups that sued stating the new rule would increase government costs in their states by $115 million next year and would cost private employers millions of dollars more, possibly leading to layoffs, per a report in Bloomberg.
The U.S. Department of Labor (DOL) Wage and Hour Division’s final overtime rule stated that employees who earn $47,476 per year are eligible as hourly employees rather than salary and will be paid overtime compensation for hours worked over the 40-hour limit. This new rule will also update the salary threshold every three years based on wage growth over time. It would have become effective December 1, 2016.
Susan E. Crocker has spoken with the Department of Labor and at this time they are recommending that employers hold firm with any changes that have already been implemented until more is known, which could come within two weeks. With the SC Terms of Employment seven-day rule to comply, employers had to announce to effected employees today to be in compliance.
We will be in touch as we know more.
As always, our mission is to keep you fair, square, and legal in all areas.
Susan E. Crocker