Overtime rule injunction: Another judicial cleanup
President-elect Donald Trump won't have to roll back all of Barack Obama's economically bereft labor rules. The courts are handling that task themselves.
An injunction by U.S. District Judge Amos L. Mazzant III puts the kibosh on the Obama administration's odoriferous overtime diktat. The rule, scheduled to begin this month, would have doubled the salary threshold ($47,476) for employees to be paid time and a half for any hours over 40 worked in a given week. Not only is the rule unlawful, Judge Mazzant wrote that the Labor Department “lacks the authority to implement the automatic updating mechanism.” His ruling is hardly surprising, given that this overtime overreach drew legal challenges from 21 states and more than 50 business groups.
The rule, in itself, is a nonstarter. It would have cost businesses $6.9 billion over the first seven years in compliance costs and would reduce family incomes across the board by $8.5 billion, according to Congressional Budget Office figures cited by The Daily Signal.
Another rule intended to compel businesses to simply roll over on union organizing — the so-called “persuader rule” — got derailed last month by an injunction from Senior U.S. District Court Judge Samuel Cummings.
Rather than shore up these two controversial labor policies with the American people and Congress, President Obama instead used his phone and pen to push through what the courts, to their credit, will not sustain.