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Dec 06
CAPSES Staff

Federal Mandatory Overtime Pay for Salaried Workers Blocked

By CAPSES Staff

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preliminary injunction has blocked the Labor Department rule that would have increased workers maximum salary limit to qualify for overtime pay automatically.  The Labor Department’s measure was set to go into effect on December 1, 2016, and raise the salary limit from $23,660 to $47,476.

On Tuesday, Nov. 22, U.S. Judge Amos Mazzant III of the Eastern District of Texas, issued the preliminary injunction.   Mazzant made the decision after a coalition of 21 states filed a case arguing that the Labor Department did not have the authority to establish a salary limit.  In response, the Labor Department issues a statement on the ruling stating “The department’s overtime rule is the result of a comprehensive, inclusive rule-making process, and we remain confident in the legality of all aspects of the rule.”

The temporary injunction suspends the regulation to allow time for the judge to evaluate the rule and issue a ruling.