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Updated: Federal Judge Blocks Implementation of New Overtime Regulation


In what can only be considered another blow to President Obama's legacy, yesterday, Judge Mazzant III of the Eastern District of Texas issued a nationwide injunction which will block the implementation of the new overtime regulation previously announced earlier this year.  The regulation, which was set to take effect December 1, would have required employers to pay time and a half to employees who worked more than 40 hours in a week and earned less than $47,476.00/year (note, this was in increase over the current threshold of $23,660.00/year).

Judge Mazaant III held that the Obama administration had exceed its authority by raising the overtime salary limit so significantly.  In this instance, the judge held there was nothing in the Fair Labor Standards Act which indicated that Congress intended the U.S. Department of Labor to define exemptions in the Act with respect to a minimum salary level (which was in fact what the Department of Labor was attempting to do with the new overtime regulation).  

Pro-business groups and Republicans have long advocated for this sort of injunction to stop the implementation of the new regulation, and cheered yesterday's ruling.  The Department of Labor indicated it "strongly disagreed" with the decision and would consider all available legal options.  With that being said, I am not sure the Department of Labor will ultimately prevail (as an incoming Republican President and Congress will likely take steps to ensure this new regulation does not become a reality).

There is a big of a bright spot for supporters of the new overtime regulation:  The injunction is temporary (unlike the permanent injunction that was handed down recently in regard to implementation of the "persuader rule").  However, I would expect this judge to strike down the regulation entirely if it gets to that point.  In the meantime, the new overtime regulation is on hold.


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