NAICU Washington Update

Texas Court Kills Obama Overtime Rule

September 14, 2017

A federal judge in Texas has struck down the Obama-era overtime rule that would have more than doubled the salary threshold for overtime pay.  Judge Amos Mazzant cited the salary increase as too high, and the Department of Labor (DOL) as exceeding its authority.

The ruling eliminates the possibility that a court could rule that the Obama overtime threshold was, in fact, legal and constitutional, and could be retroactively reinstated to the original December 1, 2016 deadline.  With a clean slate to work from, the Trump Administration has begun the rulemaking process.  Earlier this summer, DOL issued a request for public comments on adjusting the overtime threshold, and issues that should be taken into consideration while doing so.  These efforts will likely lead to a new proposed rule which should be more manageable for colleges and universities.