Obama Overtime Rule Under Fire

According to a report from Reuters on November 28, 2016, by Daniel Wiessner and Robert Iafolla, a federal judge on Tuesday Judge blocked the rule extending overtime pay to 4.2 million U.S. workers. The article reads, “U.S. District Judge Amos Mazzant, in Sherman, Texas, agreed with 21 states and a coalition of business groups, including the U.S. Chamber of Commerce, that the rule is unlawful and granted their motion for a nationwide injunction.”

“The Labor Department said it strongly disagrees with the decision. It remains confident that the entire rule is legal, and it is currently considering its options, department spokesman Jason Surbey said. The Labor Department can appeal to the New Orleans, Louisiana-based 5th U.S. Circuit Court of Appeals, but that court has stymied the Obama administration before, blocking Obama’s executive actions on immigration in 2015. In any case, the Labor Department could drop the appeal after Republican President-elect Donald Trump takes office in January.”

“Even if the rule survived the legal challenge, it could be upended by legislation passed by Congress or withdrawn by Trump’s Department of Labor.” Many businesses are left in the dark as the rule, issued by the Labor Department, was to take effect Dec. 1.