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On Tuesday (November 22), U.S. District Judge Amos Mazzant, blocked the Department of Labor's new overtime rule that was set to take effect on December 1. The rule would require mandatory overtime inclusion for individuals earning less than $47,500. The salary requirement was double the rate that is currently in place.
Judge Mazzant agreed with a lawsuit brought on by 21 states and a coalition of business groups, including the NAHB. He granted a motion for a nationwide injunction and rejected a request by the federal government to limit his order to just the states that filed the lawsuit.
The judge, who was appointed by President Obama, said that the rule conflicts with the federal law that governs who is eligible for overtime. He also stated that the federal law governing overtime does not allow the Labor Department to decide which workers are eligible based only on salary requirements.
The Department of Labor can choose to appeal to circuit court, but this ruling will delay the implementation.
Shannon Coker, EVP
Home Builders Association of Mississippi
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