Accessibility Tools

Skip to main content

Remember That New Overtime Rule That Was Going to Happen? Not Any More.

Written on .


Remember that Obama overtime rule that would have required employers to pay overtime to most salaried workers earning less than $47,476 annually (up from the current salary cutoff for overtime pay of $23,660)? Employers were struggling to find ways to deal with what would have been a significant change in wage and hour law. That struggle is over; the rule is effectively dead.

Last week, a federal judge in Texas struck down the rule. In his decision, Judge Amos Mazzant said the DOL overstepped its authority by focusing too heavily on workers' pay, rather than their job duties, to determine overtime eligibility. Then, on September 5, the Justice Department announced that it will not appeal the previous decision issued by Judge Mazzant that temporarily blocked the rule. However, it is still possible that the Justice Department could appeal the most recent ruling, perhaps to seek clarity on how and when the DOL can use workers' salaries for overtime eligibility determinations.

It has been reported that the Labor Department is already reconsidering the rule, and has asked for public comment. Labor Secretary Alexander Acosta has signaled that the DOL may issue a new rule with a more moderate salary threshold bump, potentially in the low $30,000 range. We will continue to monitor all developments.

Kathleen J. Jennings
Former Principal

Kathleen J. Jennings is a former principal in the Atlanta office of Wimberly, Lawson, Steckel, Schneider, & Stine, P.C. She defends employers in employment matters, such as sexual harassment, discrimination, Wage and Hour, OSHA, restrictive covenants, and other employment litigation and provides training and counseling to employers in employment matters.

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

Recent Content

stamp, desk table
In a first for at least the last decade or so, the EEOC has brought a discrimination claim alleging the New York Times promotion practices…
letter
Suppose a former employee following termination makes threatening, harassing, defamatory or otherwise inappropriate statements or violates…
changing leaf
On August 17, James Macy became the third GOP-appointed member of the National Labor Relations Board (NLRB), giving the NLRB three members…
glasses, beach, horizon
On August 26, 2026, the U.S. Department of Labor (DOL) addressed employee wellness programs that permit fees on workers’ health premiums fo…
infant, child, mother
Federal judges have now ruled in over a dozen cases involving the 2022 Providing Urgent Maternal Protections for Nursing Mothers Act, commo…
tipping over pawn
As a new enforcement approach, ICE has done away with an I-9 enforcement practice giving employers a period of time to correct minor or tec…