New Overtime Rule Postposed

New Overtime Rule Postposed

trashDecember 1 was to be the day millions of salaried workers would start being eligible for overtime pay based on change made by the Obama administration.  A federal judge blocked this rule to extend mandatory overtime from taking effect.   21 states and a coalition of business groups, including the U.S. Chamber of Commerce, were against the new rule saying it was unlawful.

The new rule said that any salaried employee making under $47,476 would have to be paid overtime pay, time and a half pay for hours worked over 40 per week.  This amount is double the previous amount.  Millions of additional workers would have been eligible for overtime pay with this change.  Without this change, exempt employees making a weekly salary of over $455 per week do not have to be paid anything for those hours worked over 40 in a week.

Opponents say the rule inflicts burdens on small business and results in fewer opportunities for employees.  They also say that changes such as these should respect the intent of Congress.  This ruling was an executive order signed by President Obama.  It never went before Congress for its consideration.

The Department of Labor can appeal the ruling.

 

 

 

Linda Reinhardt

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