DOL Tells Court It Wants to Rewrite Obama OT Rule Changes

The Department of Labor today appealed a decision by a Texas judge tossing overtime rules put forth by the Obama administration.

The appeal asks the court for time to rewrite the controversial rules, which would have extended overtime pay to about four million workers.

Judge Amos Mazzant struck down the rule in an August one-page ruling. In November 2016, the judge granted a preliminary injunction to 21 state plaintiffs, led by Nevada.

The rule would have roughly doubled the $23,660 threshold at which executive, administrative and professional employees are exempt from overtime pay. The DOL estimated the new rule would have affected more than four million workers, and 19 percent of all insurance industry workers.

In its appeal, the DOL defended its right to promote the rule, but not at the salary figures set by the Obama administration.

In the more expansive November ruling, Mazzant said that the plaintiffs proved both the likelihood of winning a court case, and irreparable financial harm – two key standards often difficult to achieve to gain an injunction.

In a hearing held in early November, plaintiffs cited the cost to the Kansas Department for Children and Families and the Kansas Department of Corrections. More than 50 percent of those agencies' employees are affected by the OT rule, according to court documents.

“Agencies with budgets constraints, such as the two in Kansas, have relatively few options to comply with the Final Rule — all of which have a detrimental effect on government services that benefit the public,” Mazzant wrote.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.