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Federal judge issues nationwide injunction blocking new overtime rule

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November 28, 2016

A nationwide injunction blocking the Department of Labor's new overtime rule has been issued by a federal judge in Texas. The new overtime rule would require overtime pay for more than 4 million new workers.

U.S. District Judge Amos Mazzant effectively held off a Dec. 1 start for a new Department of Labor rule nearly doubling the salary that makes employees exempt from overtime pay requirements. The rule would require such employees to make $913 per week, up from $455. The injunction came after 21 states and a coalition of business groups, including the U.S. Chamber of Commerce, sued to block the rule. Maryland was not one of the states involved in the case, but the rule, and the injunction, would apply here.

“We are encouraged with the news that this proposed change to existing regulations has been, at a minimum, delayed in its implementation. The Chamber has concerns that this proposed regulation will have substantial and harmful impact on the most vulnerable employers: small businesses, nonprofits, academic institutions, and state and local governments—and their employees,” said Christine Ross, President/CEO of the Maryland Chamber of Commerce.

For more on the story, click here.