September 25, 2017

Overtime Overreach: U.S. court strikes down expansion

By Dana A. Kravetz
HOTELS Magazine

Dana Kravetz and Diyari Vázquez’s article, “Overtime Overreach: U.S. court strikes down expansion,” was published on September 25, 2017, in HOTELS Magazine.

From the article . . .

Hoteliers in the United States can rest a bit easier now that a federal court in Texas has struck down the Obama administration’s expansion of the overtime rule, which was considered by many to be too costly.

Under the rule as revised, the minimum salary threshold under the Fair Labor Standards Act for workers to qualify for overtime pay would have been raised dramatically – from US$23,660 to US$47,476 per year – while the overtime eligibility threshold for highly compensated workers would have increased from US$100,000 to approximately US$134,000. If not for the federal court’s intervention, the broadening of overtime pay would have inured to the benefit of nearly 4 million more employees, many of them working in the hospitality industry.

Dana A. Kravetz

Firm Managing Partner
Labor & Employment