A federal judge on Aug. 31 struck down a rule promulgated during former President Barack Obama’s term that would have forced businesses to pay overtime to executive, administrative and professional employees making less than $47,476—twice the previous threshold.
A federal judge on Aug. 31 struck down a rule promulgated during former President Barack Obama’s term that would have forced businesses to pay overtime to executive, administrative and professional employees making less than $47,476—twice the previous threshold.
Judge Amos Mazzant said the Department of Labor exceeded its authority by focusing too heavily on the amount of money workers make instead of their job duties, according to Bloomberg.
"This significant increase would essentially make an employee's duties, functions or tasks irrelevant if the employee's salary falls below the new minimum salary level,” Mazzant said in his decision.
The prior rule remains in effect. Employees making more than $23,660 annually are exempt from overtime. The DOL is requesting public comment before it issues any new changes to the salary level. Comments will be accepted until Sept. 25. More information is available on the DOL’s website.
Mazzant in November placed a preliminary injunction on the rule, which would have taken effect Dec. 1, 2016.
