Fifth Circuit Judge Amos Mazzant has struck down the Department of Labor rule (DOL) that would have extended overtime pay to more than four million workers.
The rule would have required employers to pay overtime to most workers earning less than $47,476 annually but currently exempt from overtime under one of the “white-collar” exemptions. The proposed salary threshold was more than double the current annual salary limit of $23,660.
In his ruling, Judge Mazzant observed that the DOL improperly considered salaries over job duties in determining whether a worker should be eligible for overtime pay. This resulted in a rule that was insufficiently broad in application.
“Because the Final Rule would exclude so many employees who perform exempt duties, the Department fails to carry out Congress’s unambiguous intent,” Judge Mazzant wrote.