Foodservice Equipment Reports

Labor Department To Push Appeal On Overtime Rule

The Labor Department is challenging an injunction that has put a hold on changes to federal overtime regulations.

Labor Secretary Thomas Perez filed the notice of appeal in the Fifth U.S. Circuit Court of Appeals on Thursday, Dec. 1, the same day the new overtime regulations were scheduled to go into effect.

While the appeal does not immediately lift the injunction and employers are not required to comply with the new overtime rules until the court takes action, it indicates that the DOL intends to defend the Obama administration-backed rules change, despite a new administration taking office next month.

The new overtime regulation published last spring was meant to put more money in the pockets of 4.2 million workers and prevent employers from overworking employees for free. It more than the doubles the salary threshold for exempt employees, from $23,660 to $47,476 annually. It also sets automatic increases to the salary threshold every three years, starting January 1, 2020.

Twenty-one states and a coalition of business groups led by the U.S. Chamber of Commerce filed separate lawsuits in September to overturn the regulation. The complaints were consolidated, and on Nov. 22 a federal judge in Texas issued a preliminary injunction blocking the rule.

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