Judge Blocks Obama Rule Extending Overtime Pay to 4.2 Million U.S. Workers
A federal judge on Tuesday blocked an Obama administration rule to extend mandatory overtime pay to more than 4 million salaried workers from taking effect, imperiling one of the outgoing president’s signature achievements for boosting wages. U.S. District Judge Amos Mazzant, in Sherman, Texas, agreed with 21 states and a coalition of business groups, including the U.S. Chamber of Commerce, that the rule is unlawful and granted their motion for a nationwide injunction. The rule, issued by the Labor Department, was to take effect Dec. 1 and would have doubled to $47,500 the maximum salary a worker can earn and still be eligible for mandatory overtime pay. The new threshold would have been the first significant change in four decades.
Editor’s note: NADA is a plaintiff in the consolidated cases seeking to permanently halt the changes to the “white collar” overtime rule. Yesterday’s preliminary injunction means that, until further notice, the existing “white collar” salary thresholds remain in effect and that dealers should not make employee compensation adjustments based on the revised “white collar” rule’s higher compensation thresholds. For further information, contact NADA Regulatory Affairs at [email protected]