Wednesday, November 23, 2016
Texas Judge Screws Over 4.2 Million Americans Who Were About to Get Overtime Pay
By Michael Barajas
on Wed, Nov 23, 2016 at 8:00 AM
from U.S. District Judge Amos Mazzant comes on the heels of yet another Texas-led legal assault on what was supposed to be a key Obama Administration policy. The rule
, which sought to make it harder for employers to take advantage of low-paid employees, would have doubled the maximum salary at which someone working 40 hours a week can still earn mandatory overtime pay – raising the earning threshold from $23,600 a year to $47,467.
In September, Texas Attorney General Ken Paxton joined Nevada's attorney general in filing a lawsuit against the U.S. Department of Labor on behalf of 21 states seeking to block the new overtime rule, arguing it was – you guessed it – just another federal overreach that would burden businesses. In a statement this week, Paxton chided the new rule for imposing a "one-size-fits-all standard that only looks good in press statements. Not on my watch."
As the Wall Street Journal reports
, many employers who granted year-end raises to bump workers over the new earning threshold now face an awkward choice: do they claw back raises they've already promised or suspend them until the rule is ironed out by the courts?
A judge in Texas has blocked a new federal overtime rule, set to go into effect next month, that would have made some 4.2 million American workers eligible for mandatory overtime pay, including some 370,000 Texans.