A federal court is blocking the start of a rule that would have made an estimated 4 million more American workers eligible for overtime pay beginning Dec. 1.
The court says the Department of Labor’s rule exceeds the authority the agency was delegated by Congress.
The ruling is a major blow to the Obama administration, which wanted to shrink the so-called “white collar exemption” that allows employers to skip overtime pay for salaried administrative or professional workers who make more than about $23,660 per year.
The proposed change was a huge headache for employers. Accountants at Lawrence and Lawrence Accounting in Mobile said employers had tough options to weigh.
“They were really concerned that okay I was paying a person this much now if they work these same hours I know have got to pay them even more if I stay with the same rate, versus reducing their rate and concerned with losing them,” said Chris Patterson, Lawrence & Lawrence CPA.
Since the law has been halted, nothing will change after Dec. 1. It may be up to President-Elect Trump’s administration to review the law and decide how to move forward next year.