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Judge kills Obama administration's overtime rule

Joe Mont | September 1, 2017

A Texas judge has invalidated the Obama administration’s controversial regulation regarding overtime pay.

Judge Amos Mazzant, of the Eastern District of Texas, concurred with plaintiffs who argued that the final rule was not aligned with the intent of Congress in the Fair Labor Standards Act. His ruling was released on Aug. 31.

The 2016 Department of Labor rule modifies the Fair Labor Standards Act and its application to white-collar workers. Previously, only employees with an annual salary of more than $23,660 who performed certain duties could be required to work more than 40 hours a week without being compensated with overtime. The rule reset that threshold to $47,476 a year and expanded the definition of “salary basis” to allow non-discretionary bonuses and incentive payments, including commissions, to satisfy up to 10 percent of the standard salary test requirement.

Employers were given flexibility in designing systems to make sure appropriate records are... To get the full story, subscribe now.