1400 Gables Ct #103 Plano, TX 75075
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Dallas Business Law Attorney Talks Employee Overtime Rules for Texas

Dallas business law attorney, Richard “Ric” Armstrong, discusses the uncertainty surrounding proposed changes in employee overtime pay rules.

Back in 2016, the Labor Department under the Obama administration announced new rules regarding employee overtime pay that would have a profound effect on how businesses compensated salaried employees—and one that could put pressure on Texas small business owners. Three years later, after court challenges and the ushering in of a new administration, many questions linger as to whether the new rules will ever take effect.

The New Rules, in a Nutshell

The Obama-era reforms effectively called for a doubling of the overtime annual salary threshold from $23,660 to $47,476. Salaried employees earning below the $23,660 threshold must be paid time-and-a-half for each hour of work over 40 hours per week. Many salaried employees earning above the threshold are considered “managers” and are not eligible for overtime pay. Raising the threshold would have made over 4 million more workers eligible for overtime, but it could also have placed undue strain on many small business owners in the process.

The new rules were announced after an effort to raise the minimum wage was blocked by Congress. Under the Fair Labor Standards Act, the Executive Branch could enact these new rules without approval from Congress.

Challenges in Court

In November 2016, six days before the new rules were to take effect, a Texas Federal Court issued a nationwide preliminary injunction blocking the overtime pay threshold increase in response to a suit filed by several state attorneys general. In August 2017, the same judge ruled that the Labor Department had exceeded its authority and officially struck down the rule. However, the idea of raising the overtime pay threshold remains uncertain as the Trump administration continues to grapple with the question.

If you are dealing with a labor dispute or other business law question and need representation by an experienced Dallas business law attorney, we are here to help. 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