Judge grants injunction to block implementation of new overtime pay law
INDIANAPOLIS, Ind.– A federal judge has just blocked the new rule to extend mandatory overtime pay, delaying its implementation nationwide.
Arkansas Attorney General Leslie Rutledge tweeted Tuesday evening that the judge granted her request for a nationwide preliminary injunction on the rule.
Several states joined a lawsuit to challenge the Fair Labor Standards Act, which changes the threshold for overtime pay to $47,500. Salaried workers who make less than that would be eligible for overtime pay when they work more than 40 hours in a week under the law.
Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Utah and Wisconsin were a part of the lawsuit.
As the rules currently work, companies can avoid paying overtime to full-time salaried employees making as little as $23,660 by classifying them as “exempt.” Those workers aren’t entitled to overtime pay even if they work more than 40 hours a week.
The White House said the 40-hour workweek has eroded over the years, with workers putting in more hours without being compensated for them. The law was set to go into effect on Dec. 1.
This law affects millions of workers across the United States. In Indiana, nearly 250,000 workers are affected.
Rutledge said on Twitter she’s “grateful to Judge Mazant for granting this important injunction until the full legality of the rule can be determined.”