Judge Blocks Federal Overtime Rule

On Tuesday November 22, 2016, a Federal Judge in Texas halted the implementation of the federal overtime rule, which was to go into effect on December 1, 2016. The overtime rule would have increased the minimum salary for overtime pay exemption to from $23,660 to $47,476. U.S. District Judge Amos Mazzant explained that the final rule exceeded the authority of the Obama administration. Although the rule has not been updated in four decades, the judge ruled that an increase of almost double the minimum salary for overtime pay is too significant. This decision was also based on the fact that federal law regarding overtime does not allow salary-only criteria for determining who will be paid overtime. Mazzant stated that despite the duties test (which exempts employees who perform administrative, executive, or professional duties from overtime pay), the rule, “creates essentially a de facto salary-only test.” A final decision has not yet been made, and the department of labor is expected to fight back on this ruling. However, the December 1 start date has been halted and Mazzato is expected to strike down the legislation. SGIA continues to monitor the implementation of this important piece of legislation. Sign up to receive the most up-to-date regulatory and legislative information about specialty imaging.
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