• Leadership Update

Court Strikes Down Obama’s Overtime Rule

A Texas federal judge on August 31 invalidated the Obama administration’s controversial rule expanding overtime protections to millions of white collar workers, saying the U.S. Department of Labor used a salary-level test that was too high to determine which workers are exempt from overtime compensation.

As ISRI previously reported, the rule which was finalized in the last year of President Barack Obama's term, broadened federal overtime pay regulations to cover nearly 4 million more people. The judge, Obama-appointee Amos Mazzant, initially put the rule on hold last November but said in his August 31 ruling that the rule could sweep in some management workers who are supposed to be exempt from overtime protections. The judge said that the Labor Department does have the ability to use a salary test but must base eligibility for overtime pay on a combination of workers’ duties and wages. The ruling is being heralded by business groups nationwide as an important win for all manufacturers in America — halting what would have been a dramatic and devastating change in labor law that many could not afford. For more information, contact Danielle Waterfield.

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