Judge indefinitely delays new OT rules
A federal judge has slammed the brakes on an expansion of overtime by the U.S. Department of Labor to cover workers making up to $47,476 annually.
The decision made yesterday saying the agency had overreached its authority impacts the entire nation even though it was made by a Texas Federal Court Judge Amos L. Mazzant, according to a release from Worcester law office Mirick O’Connell. According to the firm, while this does not procedurally end the ability of the Department of Labor to seek a final ruling, the likelihood of receiving a reversal of the decision is “virtually non-existent,” according to the firm.
This will impact a slew of businesses that have already put salary increases in pace in anticipation of the Dec. 1 date of the change, according to the firm, leaving those firms to either honor those increases or take the risk of rolling back the salaries and negatively impacting employee morale.
But Mirick O’Connell warns that this is likely not the last we will hear of an increase to the threshold for overtime, but the judge’s ruling makes clear that such an increase is in the hands of Congress. According to the firm, there will likely be legislation attempting to accomplish a similar threshold increase, but for now companies can be secure with the former threshold.
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