Tennessee Chamber & Other Business Groups Cheer Blockage of “Overtime Rule" Earlier this week, a federal judge temporarily blocked the Labor Department's controversial overtime rule. The rule, which had been scheduled to take effect Dec. 1, would "require employers to pay overtime to most salaried workers who earn less than $47,476 annually," compared to the current threshold of $23,660. The rule also includes a provision to automatically update this salary threshold every three years beginning in 2020. The U.S. Chamber, NAM and other business groups, along with 21 state attorneys general, challenged the rule in a Texas federal court. This week's injunction "will delay the overtime rule while the case is litigated."
For immediate release: November 23, 2016
Corker Statement on Court Blocking Obama Administration Overtime Rule
CHATTANOOGA, Tenn. – U.S. Senator Bob Corker (R-Tenn.) today released the following statement after a U.S. district court judge granted a nationwide preliminary injunction blocking the Obama administration’s overtime rule.
“This decision is a huge victory for small businesses and the many Tennesseans who would have experienced reduced hours or layoffs under this rule,” said Corker. “The Obama administration’s unilateral actions made sweeping labor regulation changes without congressional input, and I am pleased a federal judge agreed that the Department of Labor overreached its authority.”
In May 2016, Corker co-sponsored the Protecting Workplace Advancement and Opportunity Act, which would nullify the Department of Labor’s changes to federal overtime rules and require a full and complete economic analysis before promulgating a substantially similar rule. In June 2016, Corker co-sponsored a joint resolution disapproving of the Obama administration’s overtime rule.
What the Overtime Ruling Means for Employers
(Partnership to Protect Workplace Opportunity) -- According to a business coalition that has been monitoring developments surrounding the new federal overtime rule, this week's injunction by a federal judge in Texas will have three key effects:
1. Employers do not need to implement changes by the Dec. 1, 2016 deadline -- although the court, after hearing the full case, could allow the rule to go forward;
2. The incoming Trump administration now has more time to make changes and end the rulemaking permanently, or issue a new rule; and
3. Congress could address the final overtime regulations during the lame duck or in the beginning of the 115th Congress.
Experts note that "employers shouldn't assume that the overtime rule will be permanently barred" and should "still have a plan to move forward if necessary in the future." For PPWO's full statement, click here.