Federal Judge Sides with Wisconsin, Prevents Implementation of Overtime Rule
MADISON, Wis. – This evening, the United States District Court for the Eastern District of Texas issued a nationwide preliminary injunction in the Department of Labor Overtime Rule case, enjoining the enforcement of the rule. In September, Wisconsin Attorney General Brad Schimel joined a bipartisan coalition of 21 states in asking the Court to prevent implementation of the Rule on December 1, 2016.
“I’m incredibly happy the Court agreed the rule should be put on hold,” said Attorney General Schimel. “There’s no greater honor than representing millions of Wisconsinites in the continuous fight for the return of power to our citizens, away from an out-of-control federal bureaucracy in Washington D.C. Wisconsin must have the ability to set its own priorities and policies.”
The new Rule doubles the salary-level threshold for employees to be exempt from overtime, regardless of whether they perform executive, administrative, or professional duties. Beginning December 1, 2016, all employees would be entitled to overtime if they earn less than $47,476 a year, including state and local government employees. Additionally, the new rule contains a ratcheting mechanism to automatically increase the salary-level threshold every three years without going through the standard rule-making process required by federal law.