Overtime Rules Blocked by Texas Court

The Overtime Rule would have made it mandatory to pay overtime to certain salaried employees. The case was brought by 21 states that argued the administration exceeded its statutory authority in raising the salary limit. There is not a clear timetable yet for the judge to rule on whether this rule may take effect at a later time.

The Department of Labor website posted their reaction to the Texas Ruling, saying:
cvertime Final Rule on December 1, 2016. The case was heard in the United States District Court, Eastern District of Texas, Sherman Division (State of Nevada ET AL v. United States Department of Labor ET AL No: 4:16-CV-00731). The rule updated the standard salary level and provided a method to keep the salary level current to better effectuate Congress’s intent to exempt bona fide white collar workers from overtime protections.

Since 1940, the Department’s regulations have generally required each of three tests to be met for the FLSA’s executive, administrative, and professional (EAP) exemption to apply: (1) the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (“salary basis test”); (2) the amount of salary paid must meet a minimum specified amount (“salary level test”); and (3) the employee’s job duties must primarily involve executive, administrative, or professional duties as defined by the regulations (“duties test”). The Department has always recognized that the salary level test works in tandem with the duties tests to identify bona fide EAP employees. The Department has updated the salary level requirements seven times since 1938.

The Department strongly disagrees with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The Department’s Overtime Final Rule is the result of a comprehensive, inclusive rule-making process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.

U.S. Senator Sherrod Brown- (D - OH) released the following statement in response to a ruling by a federal judge in Texas that blocks new Department of Labor overtime rules for workers making less than $47,476 annually. More than 130,000 hardworking Ohioans would have been eligible for overtime pay under the new rules, which were set to take effect Dec. 1.

"Using taxpayer dollars on a lawsuit to take hard-earned money out of the pockets of American workers is shameful,” said Brown. “But, the fight is far from over and we will continue fighting to make sure American workers are paid for the hours they work."

The Economic Policy Institute (who is currently fighting for a $15 minimum wage) had this to say:

"A United States District Court in Texas issued an injunction against the Obama administration’s changes to the overtime rule, arguing the Labor Department does not have the authority it has exercised since 1938, under 10 presidents, including FDR and George W. Bush, to set a minimum salary requirement for overtime exemption.

This is an extreme and unsupportable decision and is a clear overreach by the Court. For 78 years the Department of Labor has used salary as well as duties to determine overtime eligibility. Congress has amended the Fair Labor Standards Act many times and has never objected to the salary test.

The law is clear on this. The District Court’s ruling is wrong. It is also a disappointment to millions of workers who are forced to work long hours with no extra compensation, and is a blow to those Americans who care deeply about raising wages and lessening inequality."