1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

Dallas Business Attorney: More Insights on Employee Overtime Rules for Texas

Dallas business attorney, Richard “Ric” Armstrong, talks about challenges to the proposed new employee overtime pay rules and the Trump administration’s attempts to relax them.

Under new rules announced during the Obama administration that doubled the overtime salary threshold, small business owners would have had to pay overtime to millions more employees currently under salary. Before these new employee overtime rules could take effect, a Texas court put a temporary block on the salary threshold increase, then eventually struck it down. Now, the Trump administration has proposed a more moderate version of the new rules, which would ease pressure on small business owners but whose future still remains uncertain.

Revisiting the Rule

When the courts ruled that Obama’s Labor Department had exceeded its authority by doubling the overtime salary threshold, many business owners breathed a temporary sigh of relief. However, as a surprise to some, in October 2017 the Justice Department under President Trump announced plans to appeal the Federal Court’s decision, asking the courts to hold off while the Labor Department “undertakes further rulemaking.”

While there has been no final word from the Trump administration regarding overtime pay reforms, Labor Secretary Alexander Acosta suggested the overtime salary threshold might be raised from $23,660 to $33,000, a figure considerably below Obama’s proposed increase to $47,476. While this figure would still affect the payroll budgets of some small business owners, it would still represent a relaxing of the more aggressive pay increases recommended by the prior administration. Even for small business owners affected by such a rule, the amount of overtime pay would be considerably less than under the rules in their previous form. We will watch the final outcome with interest.

If you are need of help from a Dallas business attorney with legal questions regarding employee compensation or other issues, call Armstrong The Law Firm, P.C., today at 972-424-L-A-W-S (5297).

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

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5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297