4.2 million workers are in a state of limbo thanks to a judge in Texas. The federal judge granted a preliminary injunction against new overtime rules that were set to effect millions beginning this month.
The new rules would require employers to pay overtime to those who work more than 40 hours in a week but earn less than $47,476 annually. It was seen as a win for anyone who has ever worked late but not been compensated for the additional time spent on the job.
The injunction doesn’t spell the end of the new overtime rules altogether. In the next 60 days, the preliminary injunction will lead to additional court hearings. During that time, President Obama can appeal the judge’s decision to the U.S. Court of Appeals Fifth Circuit Court. While the appeals court tends to oppose Obama’s administration, there is no telling how it will all shake out.
In the meantime, workers and employers are left in the lurch. These new overtime rules were set to go into effect December 1st of this month. Many employers had already alerted their employees to a change in their status as salaried employees. Some employees saw this change as a demotion.
We’ll be curious to see how all of this works out. The current rule – if an employee makes less than $23,600 annually, employers must pay them for the hours they work beyond 40 each week – was put in place in 2004. Since that time, our economy has obviously grown and changed. The sheer cost of living difference between 2004 and today means the $23,600 rate is extremely low.
No matter what the courts decide, we’ll be sure to keep you posted on the changing – or in this case, not changing – overtime rules.
Wage & Overtime Lawyers
If you are independent contractor, but your hours, work attire, pay, etc., are controlled by a client, you may be misclassified. The nature of your relationship with a client could deem you an employee, and as an employee you are eligible for benefits such as overtime pay. You could be owed unpaid wages. Contact our Unpaid Wage & Overtime Lawyers to discuss your situation 877-544-5323.
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