Home » Federal judge rules in favor of business community on overtime rule

Federal judge rules in favor of business community on overtime rule

A U.S. District Judge in Texas has thrown out the overtime rule that would have doubled the salary threshold for exempting an employee from overtime. The district court judge determined that the U.S. Dept. of Labor overstepped its authority when it established a rule that based overtime eligibility predominately on salary and not on duties.

The rule would have pulled many managers under the overtime requirement when they should be exempt. It placed a $19 million price tag on Kentucky businesses for compliance and diminished the flexibility of employers and employees to set workable schedules.

The Kentucky Chamber opposed the regulation when it was finalized by the Obama Administration.

“We welcome this decision by the federal court and view it as important closure on a regulation that would have been costly for Kentucky businesses. At a time when we are establishing policies to grow our economy and increase jobs, businesses should be able to devote resources to their work instead of complying with this rule,” said Kentucky Chamber Vice President of Public Affairs Ashli Watts.

The Trump Administration had already taken steps to rescind the rule and is currently taking comment through Sept. 25, 2017. They are revisiting what the salary threshold should be and are taking comment in preparation for filing a notice of proposed rulemaking for a new version of the rule.

For more state government news go to the Kentucky Chamber of Commerce’s The Bottom Line blog.