A federal judge in Texas on Tuesday granted a preliminary injunction delaying the Department of Labor’s overtime rule, which was set to go into effect December 1.
“This is a welcome delay for many small businesses, especially credit unions, that would not have been able to integrate this immense increase without impacting the services they provide,” said NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt. “NAFCU and our members believe that this rule would have created major unintended consequences and obstructed growth opportunities for many white collar workers. Ultimately, in its current form, this rule could hurt the people it was trying to help.”
The injunction by Judge Amos Mazzant of the Eastern District of Texas in Sherman, Texas, is only temporary, but it is possible that he will side with 21 state attorneys general that claim the overtime rule will increase costs and force the cut of essential government services.
The Department of Labor’s rule raises from $23,660 to $47,476 the salary threshold at which employees are eligible for overtime pay under the Fair Labor Standards Act.
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