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Federal District Court Rejects Obama Overtime Rule

 

Texas Federal District Judge Amos Mazzant has entered a ruling invalidating the overtime regulations proposed by Obama’s Department of Labor (DOL). The regulations, which were adopted on May 23, 2016 and which were previously scheduled to go into effect on December 1, 2016, raised the salary threshold for “white collar exemptions” to the Fair Labor Standards Act (FLSA)’s overtime provisions from $23,550 annually to $47,476 annually.


The decision, State of Nevada, et al v. United States Department of Labor, et al, finds that the DOL’s overtime regulations effectively eliminated the “primary duty” also used for the white collar exemptions. Judge Mazzant deemed the regulations to be an overreach of the DOL’s authority.

 
Previously in the case, Judge Mazzant issued a nationwide injunction which prevented the overtime regulations from taking effect. Several commentators have noted that the Trump administration will likely implement its own overtime regulations, which raise the salary threshold from its current level, but considerably less than the threshold set by Obama’s administration.

 

Read the opinion HERE.

 

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