A Texan judge has delivered a preliminary injunction to the Department of Labour (DOL), delaying the implementation of the overtime measure that had been set for 01 December 2016 stating it requires more time to examine in greater depth whether or not the administration has exceeded its delegated authority. The injunction is the result of an action by twenty-one state and twelve employers’ organizations that oppose the Executive’s overtime rule, which raises the threshold level above which overtime is not paid (c.f. article No. 9665) and which according to the DOL would extend overtime eligibility to an estimated 4.2 million workers. The judge’s delay is particularly timely as the complainants look to Trump’s administration to reverse the rule before it ever gets implemented.
The rule adopted in May 2016 (c.f. article No. 9665) raises the previous overtime threshold from an annual salary of $23,660 (€21,000 approx.) to $47,476 (€42,000). Employers are exempt from paying overtime above the threshold level whilst under the level employees are paid per hour. The threshold is in effect a way to demarcate blue collar and ‘more autonomous’ white-collar workers and has only been altered once since 1975. The DOL called the change as a way of giving back purchasing power to
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