Texas Judge Tosses Obama Overtime Rule

The Department of Labor took another loss today when a Texas judge threw out the entire overtime rule written during the Obama administration.

Judge Amos Mazzant struck down the rule in a one-page ruling issued today. In November, 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. The DOL estimated the new rule would have affected more than four million workers, and 19 percent of all insurance industry workers.

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. Those agencies have over 50 percent of employees 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.

Today's ruling likely kills any adjustment to overtime rules for the near future, as the Trump administration opposes the idea.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com.

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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 john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.