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Obama Overtime Rules Appear Defeated as Justice Department Drops Appeal

The Justice Department Sept. 5 asked a federal appeals court to dismiss the DOJ’s appeal in the ongoing battle over a stalled Obama overtime rule that was expected to make some 4 million workers newly eligible for time-and-a-half pay.

The move comes five days after a federal judge in Texas shot down the rule, which would have doubled the salary threshold (to $47,000 per year) under which workers are automatically entitled to overtime pay for all hours beyond 40 a week. 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.

The Justice Department asked the U.S. Court of Appeals for the Fifth Circuit to dismiss the DOJ’s pending appeal of an earlier Mazzant ruling that temporarily blocked the rule before it took effect late last year.

Click to continue reading this Bloomberg BNA article.

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