US court blocks overtime expansion pay rule for 4 million
Nov 29 2016
"I can tell you this rule looks good in Washington when it's designed, but its actual effect in states like Nevada and across the country means businesses can't hire new workers", Laxalt said.
On his nationally syndicated radio talk show Tuesday, host Mark Levin slammed the Obama administration for its attempt at unilaterally extending mandatory overtime pay to more than four million salaried workers saying, "even a Leftwing judge who [Obama] appointed said, 'No, you don't have the power to do this'".
Michelle Jacobsen is an employment attorney who helps businesses in Southern Colorado navigate this uncertain terrain.
With no new overtime changes kicking in next week, Trump can accept the status quo and does not risk angering workers by revoking the new overtime benefits shortly after employees start receiving them, Garcia said.
The Labor Department says it's now considering its options, one of which would be to appeal the judge's injunction. The rule would raise the salary threshold for overtime pay from $23,360 to $47,476 per year, and includes a provision that the threshold would be increased automatically every three years. "The U.S. Chamber will continue to fight the DOL for a final ruling to block the overtime rule against last minute regulations.to protect our free enterprise system".
"It is also a disappointment to millions of workers who are forced to work long hours with no extra compensation, and is a blow to those Americans who care deeply about raising wages and lessening inequality", Eisenbrey said in a statement. The OT pay standard for salaried workers hadn't been changed since 2004.
"We strongly disagree with the decision by the court, which has the effect of delaying a fair day's pay for a long day's work for millions of hardworking Americans", the Labor Department said. Rolling back a recent salary increase will likely prove unpopular among workers.
However, because of Maine's minimum wage increase to $12 by 2020, approved by voters November 8, that threshold will increase to $36,000 a year by 2020 even if the federal rule change is struck down. Randy Johnson, a senior vice president, said in a statement, "If the overtime rule had taken effect, it would have resulted in significant new costs", reduced workplace flexibility, and caused work disruptions.
"It's the day before Thanksgiving and I don't think a lot of people are aware of this (ruling)", he said. The Labor Department said it is considering all of its legal options in the aftermath of the ruling.
Employers on Guam and nationwide will get a reprieve from implementing a new executive regulation on overtime pay exemptions.
Business trade associations and advocacy organizations are applauding the judgment that has blocked the overtime law.