Judge Overturns New Overtime Rule

Under the now-on-hold rule, any nonhourly worker who makes under $47,476 annually would be eligible for overtime

A federal judge has overturned a proposed rule that would have increased the amount that employees have to earn before they become ineligible for overtime, reports say.

Under the now-on-hold rule, which had been scheduled to go into effect Dec. 1, any nonhourly worker who makes under $47,476 annually would be eligible for overtime if they worked more than 40 hours a week. That now reverts to the previous threshold: $23,660 a year.

Business groups, including the U.S. Chamber of Commerce, filed suit against the rule, arguing that the Labor Department did not have the authority to make that change. While the judge agreed, the Labor Department is expected to appeal the ruling. It is not known if the incoming administration will support a revision to the rule. 

“Businesses should ensure that they continue to meet state and federal minimum wage requirements for employee salaries,” said the Jewelers Vigilance Committee in a statement on the ruling.

 

JCK News Director