Law360 featured comments from Partner Carrie B. Hoffman regarding a Texas federal judge’s decision to block the Department of Labor’s new overtime rules, which were set to go into effect on Dec. 1. For the time being, the decision has halted a rule change that would have reclassified millions of workers nationwide as eligible for overtime pay.
“Some workers, particularly those who work far in excess of 40 hours a week, will be upset about losing the chance for more pay. But others whose duties fall under the EAP umbrella even with a lower salary than what the DOL recommended will be happy to retain their exempt status,” said Ms. Hoffman. “Classification as exempt can come with better vacation packages and other benefits at some companies, and some employees value being paid on a salary basis instead of hourly and being considered ‘white collar.’”
While the DOL has not yet sought appeal of the injunction, the department is continuing to consider all of its options.
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