Overtime changes halted indefinitely by federal judge

Overtime changes halted indefinitely by federal judge

Following up on word from NADA, WANADA and others last week, the far reaching changes to workplace overtime rules put forth by the Obama administration to take effect December 1, 2016 have been delayed indefinitely. A federal judge in Texas blocked the Department of Laborês overtime rule changes on Nov. 22 until they can be reviewed for their consistency with the existing law. That means that until further notice, dealers and other employers do not need to make any changes in their practices around paying overtime.

The rule would have doubled the salary level that would make white collar employees exempt from overtime, from $23,660 to $47,476. The salary amount would be automatically adjusted up every three years.

The last-minute ruling by the court was in response to a lawsuit filed by 21 states and another suit filed by the U.S. Chamber of Commerce and other business groups, including NADA. The judgeês ruling said that DOL exceeded its authority by making salary the de facto test for overtime exemption, effectively replacing the duties test written into the original law.

The U.S. Chamber of Commerce applauded the ruling, noting that the Congressional Budget Office had said the revised overtime rule would cost more than $1 billion to implement. –The rule would have reduced workplace flexibility, remote electronic access to work and opportunities for career advancement,” Chamber Senior Vice President of Labor Randy Johnson said in a statement.

The Labor Department said it strongly disagrees with the decision and is exploring its options. Although the ruling last week is not final, the aforementioned overtime changes could look very different under a Trump administration and a Republican Congress. For more information contact NADAês Regulatory Affairs at mailto:regulatoryaffsairs@nada.org.