Millions may now lose eligibility for overtime after ruling

Posted November 29, 2016

A U.S. District Court judge has blocked the White House's plan to extend overtime labor protections that were scheduled to take effect December 1.

Under the rule, workers with annual salaries of up to $47,476 would be eligible for overtime pay, which is nearly double the current income threshold.

In September, the U.S. Chamber of Commerce and 21 states filed a lawsuit against the U.S. Department of Labor to stop the overtime rule that would have required employers to pay overtime to employees earning less than $46,476 a year.

Laxalt said in a press release, "Federal agencies can not unilaterally reinterpret federal law to impose burdens on state governments and businesses, and today's preliminary injunction reinforces the importance of the rule of law and constitutional government". But that could be a long process and put key decisions about fighting for the rule in the hands of President-elect Trump, who takes office on January 20.

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"This isn't a situation where employers can just put it out of their mind", she said. Before the latest action, the regulation had not been updated in more than a decade.

Attorney Tawny Alvarez of the Portland law firm Verrill Dana said that based on her discussions with clients, it appears about half of ME employers already have implemented the higher threshold for overtime pay exemption.

Sobocinski said he was glad to hear about the injunction delaying what he called an "anti-business law".

In May, the Department of Labor ordered the rule change as one of the president's significant labor policies. The injunction gives employers some breathing room as many speculate the matter won't be settled before the January 20 inauguration of President-elect Donald Trump, according to a news release from the Chamber.

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Mendelsohn said many landscaping companies have contacted NALP in recent months as they prepared for a December 1 implementation deadline, adding: "I don't think anyone anticipated that the court would act" in time to prevent the new regulation from taking effect.

Several Alabama officials have released statements following a ruling by a Texas judge to block mandatory overtime pay to workers making less than $47,500 a year. "No doubt we will be revisiting this breaking legal story through the upcoming months", he said.

"It's an extreme and legally indefensible decision", said Judy Conti, federal advocacy coordinator for the National Employment Law Project.

With no new overtime changes kicking in next week, Trump can accept the status quo and does not risk angering workers by revoking the new overtime benefits shortly after employees start receiving them, Garcia said.

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In Colorado, some restaurant owners operating on thin margins shifted salaried managers to hourly pay so they could better track their hours and cap them at 40.