Madison, Wis. - On Tuesday evening, the United States District Court for the Eastern District of Texas issued a nationwide preliminary hold in the Department of Labor Overtime Rule case.
Wisconsin Attorney General Brad Schimel said he agrees the rule should be put on hold and believes Wisconsin should have the ability to set its own priorities and policies, not the federal bureaucracy in Washington D.C. In September, Schimel joined a bipartisan coalition of 21 states in asking the Court to prevent the overtime rule implementation on December 1, 2016.
In May 2016, the Obama administration unveiled the final version of their new federal law to make millions more salaried workers eligible for overtime. Obama first unveiled the change in July 2015 during his presidential visit in La Crosse.
Under the final version of the new federal law, salaried workers, who make less than $47,476 a year, should get paid for overtime hours they work. The previous threshold was just under $24,000 a year. Some said it's good news for workers. Other said it will harm those workers and their employers. Wisconsin manufacturers and commerce is urging Wisconsin's congressional delegation to pass a bill to stop this federal rule.
Madison, Wis. (News Release) – This evening, the United States District Court for the Eastern District of Texas issued a nationwide preliminary injunction in the Department of Labor Overtime Rule case, enjoining the enforcement of the rule. In September, Wisconsin Attorney General Brad Schimel joined a bipartisan coalition of 21 states in asking the Court to prevent implementation of the Rule on December 1, 2016.
“I’m incredibly happy the Court agreed the rule should be put on hold,” said Attorney General Schimel. “There’s no greater honor than representing millions of Wisconsinites in the continuous fight for the return of power to our citizens, away from an out-of-control federal bureaucracy in Washington D.C. Wisconsin must have the ability to set its own priorities and policies.”
The new rule doubles the salary-level threshold for employees to be exempt from overtime, regardless of whether they perform executive, administrative, or professional duties. Beginning December 1, 2016, all employees would be entitled to overtime if they earn less than $47,476 a year, including state and local government employees. Additionally, the new rule contains a ratcheting mechanism to automatically increase the salary-level threshold every three years without going through the standard rule-making process required by federal law.