RVDA Regulatory Alert: Court Blocks Overtime Rule
Rule Will Not Take Effect On December 1; Future of Rule Uncertain
A federal judge has blocked the U.S. Department of Labor's (USDOL's) overtime rule from taking effect on December 1. Agreeing with arguments posed by concerned states and an array of business groups, the judge issued a preliminary injunction preventing the rules from being implemented on a nationwide basis. RVDA was among the business associations that urged the federal agency to consider regional income differences and modify the proposed rule's formula for updating overtime thresholds.
The Fair Labor Standards Act says that employees can be exempt from overtime if they perform executive, administrative or professional duties, but the rule "creates essentially a de facto salary-only test," wrote U.S. District Judge Amos Mazzant.
The fate of the overtime rules is now uncertain, according to a statement by the labor law firm Fisher Phillips. "The Trump administration will take over the USDOL in less than two months' time, and the incoming administration has repeatedly indicated that it wants to eliminate unnecessary regulations hampering the business community. Unless an appeals court reverses course in the next several weeks and breathes new life into the rules, it is quite possible that the rules will be further delayed, completely overhauled, or altogether scrapped once President Trump takes office," the law firm stated.
For more information and legal arguments surrounding the judge's decision, click here