The imposition of a nationwide preliminary injunction by U.S. District Judge Amos Mazzant III in Texas is a victory for business groups and states that challenged the Obama Administration’s new overtime rules. They argued the rules were a government overreach and would raise labor costs dramatically.
The Labor Department is considering its legal options now. Legal experts say it’s unclear if there is enough time left before Donald Trump assumes the presidency in late January for the Obama Administration to get the new rules implemented, even if the judge’s injunction is ultimately overturned on appeal.
The new overtime rules would double the current salary threshold under which white-collar workers — those with executive, administrative or professional duties — must receive overtime pay. The new threshold would be set at $47,476 a year, up from the $23,660 set in 2004. It would affect 4.2 million workers immediately, and enhance overtime protections for another 9 million, according to the Department of Labor.
Click the above audio player to hear the full story.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.