CEI Statement on Blocked Overtime Rule


On November 22, 2016, Judge Amos Mazzant of the U.S. District Court in Texas placed an injunction against the U.S. Department of Labor's rule expanding an employer mandate on overtime pay for salaried employees. Competitive Enterprise Institute labor policy expert Trey Kovacs made the following statement:

American businesses and workers got a big reprieve today from Obama regulators. For the second time in a matter of weeks, a federal court has issued an injunction against Department of Labor (DOL) regulations. The court ruled that the DOL exceeded its authority granted by Congress by dramatically raising the threshold on overtime pay for salaried employees. The regulator-driven increase was out of line with historical increases. Employers were facing budget-busting mandates starting in December that would have also meant workplace uncertainty for many workers. This decision is a lifeline for America's employers, especially state and local governments, non-profits, universities and small businesses.

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