Federal Judge Strikes Down Overtime Rule

Late last week, a federal judge in Texas struck down the Obama administration's overtime rule, The Hill reported.

The U.S. Department of Labor regulation would have drastically changed how employers, including colleges and universities, pay and classify their workers. It would have doubled the salary threshold to $47,476 from $23,660 that determines which workers are eligible for overtime pay, expanding the benefit to more than 4 million workers.

Even in its absence, however, most colleges have said they will follow through on their plans to expand overtime pay, as the rule would have required, according to The Chronicle of Higher Education.

U.S. District Judge Amos L. Mazzant initially halted the rule from taking effect in a decision in November after a coalition of states and business groups sued the Labor Department.

The judge's latest decision comes nearly two months after the Labor Department announced it would drop its defense of the rule. The department asked for public comment in July on its plan to rewrite the rule.

According to Judge Mazzant's ruling last week, the department exceeded its authority by issuing the regulation, arguing that the agency improperly looked at salaries instead of job descriptions when determining whether a worker should be eligible for overtime pay.

 

Related Links

The Hill

http://thehill.com/homenews/administration/348752-texas-judge-strikes-down-obama-overtime-rule

The Chronicle of Higher Education

http://www.chronicle.com/blogs/ticker/most-colleges-will-change-overtime-policies-despite-judges-blocking-of-new-rule/116126