Yesterday a Federal judge in Texas struck down the U.S. Department of Labor’s overtime rule that was set to increase the Federal minimum salary to be exempt from overtime from $23,660 to $47,476.
The Obama-era overtime rule, which was set to take effect December1, 2016, was stayed from enforcement by the same judge shortly before it was set to take effect.
The judge, in his ruling yesterday, said that the Department of Labor improperly considered salary in drafting its rule instead of considering job descriptions. The judge also ruled, “the salary level was set so high that it could sweep in some management workers who are supposed to be exempt from overtime protections.” The National Association of Home Builders estimated that nearly 100,000 construction supervisors were affected by the rule.
The Trump Administration recently announced that it has directed the Department of Labor to review the overtime rule and the thresholds for exemption from overtime.
S.C. Attorney General Alan Wilson was one of 21 states Attorneys Generals who challenged the Obama Administration’s overtime rule. The National Association of Home Builders weighed in with briefs making the home building industry’s case on the rule.