Federal Judge Blocks Department Of Labor Overtime Pay Rule

Nov. 23, 2016

In a letter to NAMA members, Eric Dell, senior vice president, government affairs, announced that U.S. District Judge Amos Mazzant in Sherman, Texas, agreed with 21 states and a coalition of business groups that the Labor Department's rule to raise the salary threshold for receiving mandatory overtime from $23,660 to $47,476 a year, or from $455 to $913 a week is unlawful and granted their motion for a nationwide injunction. The rule was set to take effect Dec. 1. 

The judge said the Labor Department regulation exceeded the authority granted it by Congress, which he said gave Labor the right to define which workers are considered salaried but only based on the duties they performed, not by how much they made. Click here to read more. 

“NAMA is thankful for the industry's tremendous grassroots effort opposing this regulation and seeking a reasonable legislative solution,” said Dell “NAMA's government affairs team will continue to update the industry on this issue.”