Court Halts Implementation of New Overtime Rule—for Now

A new U.S. Department of Labor rule that would have led to an enormous leap in the number of workers eligible for overtime pay in the United States has been stopped—at least for the time being—by an injunction issued in federal court. Currently, employees who make less than $23,660 annually get time-and-a-half pay if they work more than 40 hours in a week; the new standard would more than double the threshold, to $47,476. That would make millions more workers eligible for overtime pay. Employers, including urgent care centers employing front office staff, medical assistants, and radiology technician, have been scrambling to change their approach to scheduling, examining their staff needs, and otherwise trying to figure out how to comply with the law and keep their business afloat in the process. It’s unclear whether the rule will ultimately take effect, as the U.S. Department of Labor is already objecting to the judge’s decision and has vowed to continue fighting to see it put into effect. For his part, Judge Amos Muzzant says “the department exceeds its delegated authority.” Some states had filed suit to stop the rule from being implemented, recognizing the potential for a negative effect on small business in particular.