Worthless Loser
Blackpilled
A rule that was set to dramatically boost the salary threshold for the so-called “white collar” overtime exemptions was just halted by a federal judge less than two months before the full effective date. The U.S. Department of Labor (DOL) exceeded its authority by raising the threshold too high (in two phases from $35K to $44k and then $59K) and allowing for automatic adjustments every three years, according to the court. The judge not only struck down the phase-two increase to $59K set to take effect on January 1 but also knocked down the first boost that took the salary floor to $44K in July and the automatic three-year adjustments – setting the threshold back to roughly $35K for now.
How Did We Get Here?
OT Rule Would Have Applied to Millions of Workers. To backtrack a bit and provide context, the Biden DOL implemented a rule that extends overtime coverage to about 4 million additional workers by raising the salary threshold for the so-called “white-collar” exemptions. It rose to about $44K on July 1, and was set to jump to nearly $59K on January 1.
History Repeats Itself. This lawsuit did not come as a surprise, and it tracks a challenge to the Obama administration’s 2016 rule – which also attempted to dramatically increase the salary threshold. In fact, the new lawsuit was filed in the same federal district court in Texas.
In 2016, the court stopped the rule from taking effect just days before the hike was set to take effect – and then permanently blocked the rule a few months later. In that case, the court said the new salary threshold was too high because it “essentially makes an employee’s duties, functions, or tasks irrelevant if the employee’s salary falls below the new minimum salary level.” The court also prohibited the DOL from automatically increasing the salary threshold without following certain requirements under the Administrative Procedure Act, such as providing notice and allowing the public an opportunity to comment.
Judges don't matter right
How Did We Get Here?
OT Rule Would Have Applied to Millions of Workers. To backtrack a bit and provide context, the Biden DOL implemented a rule that extends overtime coverage to about 4 million additional workers by raising the salary threshold for the so-called “white-collar” exemptions. It rose to about $44K on July 1, and was set to jump to nearly $59K on January 1.
History Repeats Itself. This lawsuit did not come as a surprise, and it tracks a challenge to the Obama administration’s 2016 rule – which also attempted to dramatically increase the salary threshold. In fact, the new lawsuit was filed in the same federal district court in Texas.
In 2016, the court stopped the rule from taking effect just days before the hike was set to take effect – and then permanently blocked the rule a few months later. In that case, the court said the new salary threshold was too high because it “essentially makes an employee’s duties, functions, or tasks irrelevant if the employee’s salary falls below the new minimum salary level.” The court also prohibited the DOL from automatically increasing the salary threshold without following certain requirements under the Administrative Procedure Act, such as providing notice and allowing the public an opportunity to comment.
Federal Judge Blocks $44k and $59k Overtime Rule Nationwide: The 6 Questions Employers Should Answer to Plan Immediate Next Steps
A rule that was set to dramatically boost the salary threshold for the so-called “white collar” overtime exemptions was just halted by a federal judge less than two months before the full effective…
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Judges don't matter right