Federal Court Ruling Blocks Labor Department Overtime Requirement
Pushing Back December 1st Effective Date
A federal judge on Tuesday blocked a new Labor Department rule that made millions more Americans eligible for overtime pay. The decision by U.S. District Judge Amos Mazzini granted a preliminary injunction that blocks overtime pay for 4.2 million workers who worked in excess of 40 hours per week.
The rule that was released by the Department of Labor in May of 2016 would almost double the threshold at which executive, administrative and professional employees are exempt from overtime to $47,476 from $23,660.
A coalition of business interests and 21 states have argued that the administration’s new overtime rule was unlawful. The Congressional Budget Office estimated that the new regulation would cost employers over $1 Billion annually.
“The Hampton Roads Chamber of Commerce shares the concerns of many in the business community that the new regulation would have reduced workforce flexibility, remote electronic access to work and opportunities for career advancement.” said Bryan Stephens, President and C.E.O., Hampton Roads Chamber of Commerce.