Judge Strikes Rule to Double Overtime Pay Threshold

Filed in Labor, Safety and Health, Legal by on September 5, 2017 0 Comments

This post was updated on Sept. 7

A federal judge has struck down the Obama administration’s overtime rule that would have doubled the salary threshold for workers to be able to receive overtime pay. The Justice Department subsequently announced it would not appeal the ruling, effectively ending the Obama-era expansion of the overtime rule.

The Obama administration’s final rule that was set to take effect Dec. 1, 2016, raised the salary threshold for executive, administrative, or professional workers to receive overtime pay from $23,660 to $47,476.

Working with Congress and members of our business coalition, NAHB led the effort to mitigate the effects of the rule. Moreover, last year, NAHB joined other business groups in filing a lawsuit in federal court challenging the overtime rule. As a result of these efforts, the rule has not been enforced because a judge issued a preliminary injunction against it.

On Aug. 31, the district court issued a decision finding the Department of Labor exceeded its authority and the automatic update provision was unlawful. Accordingly, the court held the overtime rule is invalid. Less than a week later on Sept. 5 the rule was effectively killed when the Justice Department announced it would not appeal the district court’s decision.

In mid-July, the Department of Labor issued a request for information on the Obama administration’s overtime rule, and NAHB intends to submit comments independently, and as part of the Partnership to Protect Workplace Opportunity coalition.

For more information, contact Felicia Watson at 800-368-5242 x8229.

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