Federal Court Halts December 1 Overtime Rule Implementation

in Justice Center, Legal, NYSCAL Priority Alert

AHCA/NCAL has just provided the following concerning a Federal Court ruling on the December 1 Overtime Rule.  More details will be provided as they become available.

Message from AHCA/NCAL

Yesterday, U.S. District Judge Amos L. Mazzant ruled in favor of a preliminary injunction for the Department of Labor's (DOL) overtime rule, delaying the original December 1, 2016 implementation date nationwide.

The rule was set to increase the annual salary cap to $47,892, which accounts for time-and-a half pay for employees working over 40 hours in a given week. The DOL has estimated that the rule change would affect 200,000 hospital workers and 300,000 non-hospital health care workers.  

Judge Mazzant's decision stated that the more than 70 plaintiffs that sued to block the rule would suffer serious financial harm if the rule was enforced as scheduled. They would be forced to choose between raising salaries for thousands of managerial employees and reducing work hours and possible services. While the Obama administration argued that it was purely updating the rule to keep up with modern times, the judge indicated it had overstepped its authority.

If the injunction remains intact when President-elect Trump takes office, it may allow the new administration additional avenues in which to modify, amend or repeal this overtime rule. AHCA/NCAL will continue to monitor this rule and provide timely updates as they are available.