The latest chapter in the saga of the Labor Department's new overtime rule has been written by a judge. The Wall Street Journal reports:
U.S. employers have spent months adjusting employee schedules, job duties and pay ahead of a new overtime rule set to take effect next week. But an order from a federal judge on Tuesday puts the fate of the rule into question.
The preliminary injunction essentially halts the implementation of a rule that would have required employers to start paying overtime to workers earning salaries of less than $47,476 a year, making millions more workers eligible for time-and-a-half pay.
Employers that made big changes in their workforce ahead of the rule’s Dec. 1 effective date—either by raising managers’ salaries to the newly set threshold for overtime pay or eliminating job categories like assistant manager—say they aren’t yet planning to reverse course, while others are taking a wait-and-see approach.