Texas judge kills overtime rule

Written on Sep 01, 2017

OSCPA staff report

A Texas judge on Sept. 7 struck down an Obama Administration Department of Labor rule that would have doubled the minimum salary threshold for overtime pay for workers who put in more than 40 hours per week, from $23,660 to $47,476 annually.

Obama appointee Judge Amos Mazzant granted the motion brought by the U.S. Chamber of Commerce and other business groups and industry associations to invalidate the rule. The court ruled that the DOL focused too much on the salary and not on the responsibilities of the worker. The DOL rule, which would have impacted more than 4 million workers, also raised the exemption level for what are considered “highly compensated employees” from $100,000 to $134,004 annual salary.

This is the same overtime rule that was dramatically halted last November only days before it was set to go into effect.

The Ohio Society of CPAs joined more than 400 U.S. organizations in the Partnership to Protect Workplace Opportunity to encourage lawmakers to stop the rule, saying it would have a negative impact on employers and workers.

In June, the DOL sent a formal request for information to the Office of Management and Budget on the overtime rule, looking to amend it by lowering the salary threshold.

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