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Judge rules against new overtime wage threshold

On Behalf of | Sep 6, 2017 | Firm News |

California employees may be interested to know that a judge has struck down an overtime rule created during the Obama administration. The ruling was issued on Aug. 31 by the same judge who blocked the rule from taking effect one year ago. If it took effect, the new rule would impact about 4 million workers, and it would allow those making up to about $47,000 to be automatically eligible for overtime pay.

As many as 21 states and various business groups had challenged the rule, and the Trump administration said that it would make changes to it. According to the judge’s ruling, implementing the rule could have made managers eligible for overtime pay. Generally, management positions are exempt from overtime pay. The attorney general for Nevada agreed with the judge’s ruling and said that it could have led to job losses if implemented.

However, the National Employment Law Project pointed out that the rule was subject to roughly 300,000 comments before it was adopted. It also pointed out that the Department of Labor took two years to create the rule. The National Restaurant Association was among business groups who agreed with the Texas judge’s ruling and said that it would work with the Trump administration to create a workable rule.

Employees who believe that they haven’t been paid minimum wage or been given proper overtime pay may benefit from talking to an attorney. It may be possible for an attorney to review evidence related to wage and hour disputes to determine if an individual has a case. If multiple employees have potential wage claims against an employer, it may be possible to for all those impacted to pursue a class action case. If successful, workers may be entitled to back pay and other damages.