Texas Judge Blocks New Federal Overtime Rule

  23 November 2016

A Texas judge blocked President Obama's attempt to expand overtime pay to millions of Americans, thereby preventing a key presidential priority just days before it was set to take effect.

The Department of Labor (DOL) rule would have doubled the salary level at which hourly workers must be paid extra for overtime pay, from $23,660 to $47,476. Siding with business groups including the U.S. Chamber of Commerce, Texas District Judge Amos L. Mazzant III halted implementation of the new rule. Plaintiffs had argued the Labor Department acted beyond its authority under the Fair Labor Standards Act. The Obama administration said more than 4 million salaried workers stood to benefit from the change when it took effect December. 1. The rule was already in jeopardy after the election of Donald Trump. Just as the Obama administration made the change through its rule-making prerogatives, a Republican administration could undo it. Neither the White House nor the Labor Department had an immediate comment. Read more here.