Victory: NFIB Applauds Federal Court’s Decision Striking Down Unfair Overtime Rule
The National Federation of Independent Business (NFIB) applauded a decision by a federal judge in Texas to strike down the Department of Labor’s overtime rule, which would have overburdened small businesses with heightened labor expenses by making millions of workers qualify for overtime pay.
In an expedited summary judgement, the ruling made permanent the temporary injunction the court had imposed against the controversial overtime rule last November. The ruling was a huge victory for small business.
Originally scheduled to take effect last December, the Obama-era overtime rule would have enabled 4.2 million employees to be eligible for time-and-a-half wages for every hour worked over the standard 40 hours per week. If the overtime rule had been allowed to stand, it would have driven up the cost of doing business for employers across the country.
This case was brought by NFIB and more than 55 other business groups in the U.S. District Court for the Eastern District of Texas.
The regulation would have doubled the salary threshold below which employees are eligible for mandatory overtime. According to NFIB research, 44 percent of small businesses employ at least one person who would be eligible under the rule.
NFIB opposed the rule when it was announced by the Department of Labor in early 2016. According to NFIB’s Small Business Legal Center, it would increase labor costs for small businesses by forcing them to pay overtime to millions of additional workers.