A Federal Judge in Texas issued an injunction, halting the Obama Administrations new overtime laws that were set to take effect on December 1st.
On Tuesday, November 22, 2016, Amos L. Mazzant III of the Eastern District of Texas, ruled that President Obama and the Department of Labor had exceeded their authority in raising the overtime salary limit. The new regulation would move the salary limit that exempts workers from receiving overtime pay from $23,660 to $47,476. This injunction is a temporary measure that stops the regulation from taking effect until the judge can issue a full ruling. The injunction casts serious doubt on the Regulation taking effect on December 1st, as originally planned.
Is The New Overtime Law Good For Business?
Many business owners criticized the regulation, which Obama championed, claiming that businesses would either lose their ability to operate or have to cut workers’ hours significantly. By shifting the minimum threshold to qualify for overtime pay (time and a half), millions of American workers would instantly become eligible. While this sounds like a good thing for many workers, that means that business owners would have to start paying time and half for office managers, fast-food shift managers, paralegals, and mid-level administrative positions. Rather than pay the required overtime, many businesses simply planned on eliminating these positions or creating two part-time positions to handle the one job function.
The Department of Labor has strongly disagree with Judge Mazzano’s ruling and plans to fight the injunction, using “all legal options.”
Creating A Plan For The New Overtime Laws
Regardless of the results of this legal battle, your business needs to be ready. Do you have a plan for implementing the new overtime regulations if the Department of Labor and the Obama administration win? Do you have questions about what employees qualify for overtime or who is exempt for the minimum standards? Call the lawyers at the BiState Law Center. We can you understand the impact of these regulations on your business and how to best handle your business after this injunction is resolved.