Obama administration appealing OT injunction

The Justice Department is pushing forward in its drive to get new overtime rules put into place as soon as it can.

DOJ lawyers filed an appeal of an injunction that prevented the rule from going into effect on Dec. 1, as planned.

The injunction, issued by a federal court judge, came in response to a suit challenging the rule by 21 states, led by Texas and Nevada.

Judge Amos Mazzant of the U.S District Court for the Eastern District of Texas said the Department of Labor had exceeded its authority by raising the salary threshold for a worker to be exempt from mandatory overtime pay from $23,660 to $47,476.

The ruling suggested that, under federal overtime laws, the Labor Department is only able to determine overtime eligibility based on job duties, not salary.

If the legal battle drags on, it is unlikely that the incoming Trump administration will continue fighting on behalf of the rule.

In the one instance in which the president-elect commented on the issue during the campaign, he said that he would like to see an exemption from the rule for small businesses.

If Trump were to reverse course, it would be a great disappointment to the Republican attorneys general who sued. In a statement following the announcement of the injunction, Texas Attorney General Ken Paxton, who led the suit, said that the new rule “hurts American workers.”

Congressional Republicans also denounced the rule when the Obama administration announced the final version in May. House Speaker Paul Ryan called it “an absolute disaster.”

About the Author

Will Temby

Will has enjoyed a 20-year career in leadership positions in the hospitality and travel industry throughout the U.S. with the Hyatt, Sheraton, Hilton, Renaissance and Steamboat Ski and Resort corporations. Will received a Bachelor of Science degree from the University of Massachusetts at Amherst. From 2000-2007, he served as President and CEO of the Greater Colorado Springs Chamber of Commerce. He also served as Vice President-Special Projects for the University of Colorado Foundation from 2007 to 2009. Will is a past Chair of the Board of Directors of the National Homeland Defense Foundation and former member of the United States Chamber of Commerce Committee of 100. He is married to Nan, has five wonderful children, and enjoys coaching, traveling, hiking, golfing and skiing.