Mandatory Overtime Pay

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Bonnie Hein

On November 22, 2016, U.S. District Judge Amos Mazzant III issued a preliminary injunction denying the U.S. Department of Labor's new regulation to extend mandatory overtime pay. Under the  regulation, workers who earn less than $47,476 per year and work more than 40 hours per week would have received mandatory overtime pay beginning December 1, 2016.

The Department of Labor's new guidelines applied to an estimated 4.2 million workers and would have doubled the maximum salary workers were allowed to earn and still be eligible for overtime pay, previously updated in 2004.

In anticipation of the December 1st deadline, many businesses have already increased salaries for employees who fall into this category in order to avoid paying the mandatory overtime…

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