In a significant ruling for employers throughout the country, a federal judge in Texas yesterday declared that the Obama administration’s 2016 rule that would have significantly changed the overtime rule for all employers is invalid. U.S. District Judge Amos Mazzant granted summary judgment to over 50 business groups which had challenged the 2016 overtime rule. The rule would have more than doubled the minimum salary required to qualify for the “white collar” exemption from $23,660.00 to $47,476.00. As a result of the Court’s ruling yesterday, employers now have certainty that the Obama overtime rule is not enforceable. The U.S. Department of Labor recently sent out a Request For Information concerning the 2016 overtime rule. Such a request most likely is indicative that the Department of Labor is trying to determine whether there is a need for new rule making on the overtime issue.
Overtime Rule
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