Obama overtime rule blocked by judge

Obama overtime rule blocked by judge

The ruling is temporary in that it puts the new rules on hold until the court reaches a final decision.

The statement said the administration is "currently considering all of our legal options". Those workers aren't entitled to overtime pay, even if they work more than 40 hours a week.

The department had estimated the rule change would have made millions of workers eligible for overtime pay.

Millions of Americans could see a boost in their pay next month.

A federal judge in Texas blocked an Obama administration expansion of the overtime rule on Tuesday, just days before it was set to take effect. "While a modest increase in the overtime threshold would have been appropriate, many franchises were faced with hard and costly decisions about how to reclassify their greatest assets-their employees", said Cresanti. "Congress has amended the [law] many times and has never objected to the salary test".

His administration could choose to make its own rule changes through the lengthy administrative process. They questioned the sudden increase in the salary threshold. But as a practical matter, and from an employee morale perspective, "it's very challenging to take it back", said Thomas Linthorst, an employer-side attorney at the law firm Morgan Lewis.

But the easiest thing for employers to do is to make sure employees do not work more than 40 hours a week.

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The National Association of Manufacturers was among the business groups to oppose the rule and applauded the decision.

National Retail Federation Senior Vice President for Government Relations David French called the overtime changes "a reckless and aggressive overreach of executive power".

"Only a couple times during the campaign did he talk about it, and what he talked about was maybe coming up with some exemption for smaller employers".

Since the rule never took effect, it's hard to say the exact impact it would've had on the industry, but it had the potential to create drastic change in the way overtime pay worked. Sheila Cochran is with the Milwaukee Area Labor Council.

A hearing to consider making the injunction permanent could follow, but Obama's executive order could simply be reversed by the incoming Trump administration.

District Judge Amos Mazzant III, in a hearing on the matter, questioned the justification for how workers now classified as exempt from overtime would be reclassified as non-exempt despite having the exact same job duties.

The states included in the lawsuit are Ohio, Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Oklahoma, South Carolina, Texas, Utah, and Wisconsin.