An Indianapolis federal judge has rejected the proposal of an extension to the mandatory overtime pay rule. This decision will impact the entire country as it will delay the implementation of the rule across the nation.
Twenty-one states took part in a lawsuit that was geared toward changing the fact that employers have been able to neglect paying overtime compensation to those making $23,660 or less. By classifying them as exempt, employers are able to get more than 40 hours of work out of salaried employees without having to compensate them for their added time.
There are many things that led to the deterioration of the traditional 40 hour work week, and a growing number are being asked to put in more hours. While this can be an incentive for hourly employees, salaried employees make the same amount of money regardless of how much effort they put into the job. The new rules are pushing to require employees to pay overtime to salaried employees making less than $47,500.
Included in the states that are pushing to pass the new rule are Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Utah and Wisconsin.
Just one of the reasons implementation of the rule has been delayed is to protect employers and give them more time to prepare for the added expenses in pay for employees. However, it’s also expected that receiving compensation for overtime work will boost the morale of employees, and this can easily provide enough of an impact that will make the new expense one that can be viewed as a beneficial investment worthwhile for the company to make.
The new rule was supposed to take effect on December 1. The recent preliminary injunction impacts millions of workers across the country with around a quarter of a million in Indiana alone. In response to this action, Arkansas Attorney General Leslie Rutledge reports that she feels the judge’s decision is one that will help determine the full legality of the rule.