Salaried Worker? Required Overtime Pay Blocked

Politics

Nov 23 2016, 5:18 am ET

Obama's Plan to Extend Overtime Pay Is Blocked by Federal Court

by The Associated Press

[SUMMARY FROM BEVIS CONSULTING] - Overtime pay change scheduled to take place December 1, 2016, has been cancelled! Employers will not required to pay salaried staff who earn between $23,660 - $47,500 (changing every three years to account for inflation)  overtime pay for working hours exceeding 40 hours/ week of work. Why: According to a Federal Court, the Department of Labor overstepped its authority to make this change without proper approval from Congress. The change now is “on hold” until going through proper procedures, or an Appeal is filed and won. I.e. this will be settled under the Trump Administration. Trump is on record as saying he thinks workers are overpaid.

[SUMMARY COMMENT FROM CRISIS-COACHING] - This blocking of overtime pay will likely effect required payment of overtime to salaried senior and elderly caregivers, and case managers, adult residential care-workers who oftentimes work longer than eight hours in a shift.

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[ASSOCIATED PRESS - LAS VEGAS]  — In a blow to the Obama administration's labor-law plans, a federal court has blocked the start of a rule that would have made an estimated 4 million more American workers eligible for overtime pay heading into the holiday season.

As a result of Tuesday's Ruling, overtime changes set to take effect Dec. 1 are now unlikely be in play before vast power shifts to a Donald Trump administration, which has spoken out against Obama-backed government regulation and generally aligns with the business groups that stridently opposed the overtime rule.

The U.S. District Court in the Eastern District of Texas granted the nationwide preliminary injunction, saying the Department of Labor's rule exceeds the authority the Agency was delegated by Congress.

"Businesses and state and local governments across the country can breathe a sigh of relief now that this rule has been halted," said Nevada Attorney General Adam Laxalt, who led the coalition of 21 states and governors fighting the rule and has been a frequent critic of what he characterized as Obama administration overreach. "Today's preliminary injunction reinforces the importance of the rule of law and constitutional government."

The Regulation sought to shrink the so-called "white collar exemption" that allows employers to skip overtime pay for salaried administrative or professional workers who make more than about $23,660 per year. Critics say it's wrong that some retail and restaurant chains pay low-level managers as little as $25,000 a year and no overtime — even if they work 60 hours a week.

Under the rule, those workers would have been eligible for overtime pay as long as they made less than about $47,500 a year, and the threshold would readjust every three years to reflect changes in average wages.

The Department of Labor said the changes would restore teeth to the Fair Labor Standards Act, which it called "the crown jewel of worker protections in the United States." Inflation weakened the Act: overtime protections applied to 62 percent of U.S. full-time salaried workers in 1975 but just 7 percent today.

The Agency said it's now considering all its legal options.

"We strongly disagree with the decision by the court, which has the effect of delaying a fair day's pay for a long day's work for millions of hardworking Americans," the labor department said in a statement.

Tags: caregivers, case managers, Congress, Department of Labor, Eastern District, Overtime pay, Texas, U.S. District Court