Obama-era Overtime Rule Struck Down
Late yesterday evening, Judge Amos Mazzant from the U.S. District Court of Texas’ Eastern District officially struck down the Obama Administration’s controversial overtime rule. Judge Mazzant invalidated the rule, citing the Department of Labor’s (DOL’s) improper use of a salary-level test to determine workers’ overtime compensation eligibility. As you are aware, this has been a high priority for the foodservice industry and after a rigorous few years, we are very pleased to see this outcome.
Judge Mazzant ruled in favor of the Plano Chamber of Commerce and more than 55 other business groups challenging the Obama-era rule, saying the DOL “has exceeded its authority and gone too far with the final rule.” He also said the DOL’s final rule makes overtime eligibility dependent on a minimum salary level regardless of an employee’s job duties, and that “because the final rule would exclude so many employees who perform exempt duties, the department fails to carry out Congress’s unambiguous intent.”
While DOL Secretary Acosta has indicated moving forward with updating the Overtime Rule in the future, we are thankful the judge recognized that the DOL overstepped its authority in the changes it made to the federal overtime rule. This decision will help protect businesses and workers from the negative impacts these changes would have had on our industry. The industry is committed to working with the DOL on any future changes and as always, we will keep you updated on any new developments.
Judge Mazzant ruled in favor of the Plano Chamber of Commerce and more than 55 other business groups challenging the Obama-era rule, saying the DOL “has exceeded its authority and gone too far with the final rule.” He also said the DOL’s final rule makes overtime eligibility dependent on a minimum salary level regardless of an employee’s job duties, and that “because the final rule would exclude so many employees who perform exempt duties, the department fails to carry out Congress’s unambiguous intent.”
While DOL Secretary Acosta has indicated moving forward with updating the Overtime Rule in the future, we are thankful the judge recognized that the DOL overstepped its authority in the changes it made to the federal overtime rule. This decision will help protect businesses and workers from the negative impacts these changes would have had on our industry. The industry is committed to working with the DOL on any future changes and as always, we will keep you updated on any new developments.
