Published: Sat, September 02, 2017
Money | By Armando Alvarado

Texas judge strikes down Obama overtime rule

Texas judge strikes down Obama overtime rule

The Texas judge ruled against the rule Thursday, which would have extended mandatory overtime pay to more than four million USA workers.

After Judge Mazzant issued his rule in State of Nevada et al. v.

The rule would have almost doubled current salary threshold from its current $23,360 to $47,476, under which virtually all workers will be eligible for mandatory time-and-a-half overtime pay.

The Department of Labor (DOL) proposed to extend the implementation of its fiduciary rule for retirement advisors by a year and a half.

In April, the department released a measure officially delaying the implementation of the rule and its related exemptions by 60 days, until June 9.

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In what may or may not be a coincidence, the parties in the case filed a motion Thursday with the 5th Circuit asking that the court remove from its schedule for October 3 oral arguments in the case because they "have been engaged in ongoing discussions on how to narrow the scope of their dispute and potentially eliminate the need for this interlocutory appeal". The Fifth Circuit has yet to rule on this motion-it is also possible that the Fifth Circuit would now dismiss the appeal as moot given that the district court has entered final judgment.

"The Overtime Rule limits workplace flexibility without a corresponding increase in pay and forces employers to cut their workers' hours", Rylander said.

"I strongly disagree with the court's ruling and believe the Department of Labor under President Obama and Secretary [Tom] Perez was well within its authority to provide the first meaningful update to the overtime rule in four decades, " said U.S. Rep. Mark Takano (D-Calif.), ranking member of the Subcommittee on Workforce Protections. Because Congress clearly defined the EAP exemptions with regard to duties, "any salary-level test that will effectively eliminate the duties test [or] categorically exclude those who perform "bona fide executive, administrative, or professional capacity' duties" is thus improper. We will continue to work with (the Department of Labor) on behalf of the restaurant industry to ensure workable changes to the overtime rule are enacted", the group's statement continued. "There weren't many legal arguments raised in yesterday's ruling that didn't form the foundation of his original ruling", which was that the Department of Labor had exceeded its authority.

Cap of $47,000 could impact managers, says Judge Mazzant in his ruling. He said right now "it all points in the same direction".

On May 23, 2016, the Department of Labor issued the final new overtime rule.

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