Court Ruling Blocks Overtime Pay Rule, Halts Enforcement Nationwide
Last week, a federal judge in Texas issued an injunction blocking the implementation of the Department of Labor’s new overtime regulation, set to take effect December 1. The regulation raises the exemption threshold for employee overtime pay from its current level of $23,660 to approximately $47,476.
The court ruling means that employers nationwide will not be required to implement the new overtime pay rule until the litigation is resolved and a further ruling is issued—a process that is likely to stretch out at least into January. At that time, incoming President Trump, who has expressed opposition to the overtime pay change, may have the opportunity to effectively kill the regulation by declining to appeal or defend it further.
The regulation would have extended overtime pay to an estimated 5 million previously ineligible workers; it also would have had a major impact on safety-net health services organizations operating with tight margins under reimbursement rates set by government or third-party payers that limit employers’ ability to adapt to these changes. Read more about the anticipated future of the regulation here.
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