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Federal Judge Blocks DOL’s Overtime Rule

Yesterday, a Federal judge for the U.S. District Court for the Eastern District of Texas blocked the Department of Labor’s (DOL) new Overtime Rule, which was set to go into effect on December 1st. The judge ruled the new regulation to be unlawful and issued a nationwide preliminary injunction that takes effect immediately. Had it taken effect, the DOL’s rule would have increased the minimum salary threshold for white collar workers from the current level of $23,660 ($455/week) to $47,476 ($917/week), and included future automatic increases to the salary threshold every three years in perpetuity, regardless of economic conditions and without the input of stakeholders.

The DOL may choose to appeal the ruling; however, with a new Republican administration taking over in January, it becomes less likely that such steps will be taken. IEC continues to work with its coalition allies in the Partnership to Protect Workplace Opportunity to blunt the effects of DOL’s regulatory overreach. An increase to the overtime threshold is still possible in the near future, but IEC will work to ensure that any proposed increase will be more reasonable for the merit shop electrical contracting industry to absorb.

If you have any questions, please contact Jason Todd, VP of Government Affairs for IEC, at jtodd@ieci.org.

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