Events and News

DOL's Overtime Rule Blocked Nationwide By Judge

November 23, 2016

On November 22, 2016, a Texas federal judge issued a nationwide injunction blocking the U.S. Department of Labor from implementing its new federal overtime rule which was set to take effect Dec. 1.  About 4 million workers would have become eligible for overtime pay under the rule which would have doubled the Fair Labor Standards Act’s (FLSA’s) salary threshold from $23,660 to $47,892 a year for full-time executive, administrative and professional workers.

The U.S. District Court Judge Amos Mazzant said in his ruling that by requiring employers to pay overtime wages based on salary rather than an employee’s duties, the Labor Department exceeded its authority under the Fair Labor Standards Act and ignored Congress’s intent. “If Congress intended the salary requirement to supplant the duties test, then Congress and not the department, should make that change,” he said.

Although the injunction is only temporary, the judge’s decision signaled a strong likelihood that he'll eventually side with over 20 state attorneys general and a coalition of business groups that sued to block the regulation. In addition, the Labor Department can appeal the ruling, but the incoming Trump administration subsequently could drop any appeal.

For now, the overtime rule will not take effect as planned on Dec. 1, so metalcasters may continue to follow the existing overtime regulations. For additional information, contact Stephanie Salmon, AFS Washington office, ssalmon@afsinc.org