Judge puts pending overtime rule on hold

The ruling tips in favor of businesses, which typically don't want to pay for more overtime.
The ruling tips in favor of businesses, which typically don't want to pay for more overtime.

The U.S. District Court for the Eastern District of Texas granted a preliminary injunction against a pending overtime rule that would have increased overtime pay eligibility for most long-term care employees.

The pending measure was scheduled to take effect Dec. 1. If enacted, it would have increased the salary level for overtime exemptions from $23,660 to $47,476.

Judge Amos L. Mazzant III ruled that states were able to show the rule would have caused “irreparable harm” to employers.  Conversely, the Labor Department failed to demonstrate the rule would be harmless, he wrote. His order prevents the rule from taking effect nationwide, pending further review.

Several industry organizations had previously expressed concerns about the rule and the fiscal toll it could take on operators.