A federal district court has killed the new federal overtime regulation by issuing a temporary restraining order just a week before it was slated to go into effect on Dec. 1.
The lawsuit seeking to overturn the rule was brought by more than 50 employer groups and the attorneys general of 21 states.
The court stay can be said to have killed the rule because President-Elect Trump is expected to end defense of the rule in court. The new administration could settle the suit and also rescind the rule.
Under the rule issued earlier this year by the Department of Labor, the minimum salary threshold for employees to qualify for overtime pay would rise to $913 per week, or $47,476 annually, more than double the current limit of $455 per week, or $23,660 per year.
Unhappy with the Texas court decision DOL said, "We strongly disagree with the decision by the court, which has the effect of delaying a fair day's pay for a long day's work for millions of hardworking Americans."
The U.S. Chamber of Commerce said, “We are very pleased that the court agreed with our arguments that the Obama administration’s new overtime rule was unlawful and stopped rule from taking effect.”
Juanita Duggan, President National Federation of Independent Business, another plaintiff, also called the injunction "a victory for small business owners and should give them some breathing room until the case can be properly adjudicated."
David French, senior vice president for government relations at the National Retail Federation, another association who had sued, also was happy with the court’s action, said, “The Labor Department’s overtime changes are a reckless and aggressive overreach of executive power, and retailers are pleased with the judge’s decision.”