Overtime-rule decision will help free the economy from the regulatory stranglehold

U.S. Chamber of Commerce President and CEO Thomas J. Donohue issued the following statement Aug. 31 in response to the decision by Judge Amos Mazzant, a U.S. District Court judge in Texas, to grant the motion brought by the U.S. Chamber and other business groups to strike down the Obama administration’s overtime pay rule (Note: The rule would have doubled to about $47,000, the maximum salary that an employee can earn and still be automatically eligible for OT pay):

“[This]  decision is another victory for the effort to free our economy from the regulatory stranglehold of the last eight years. We have consistently said that the last administration went too far in its 2016 overtime rule, and we are pleased that Judge Mazzant granted a final judgment that makes permanent his previous ruling against the overtime rule.

“[The] decision means small businesses, nonprofits, and other employers throughout the economy can be certain that the 2016 salary threshold will not result in significant new labor costs and cause many disruptions in how work gets done. The Obama administration’s rule would have resulted in salaried professional employees being converted to hourly wages, reduced workplace flexibility and remote electronic access to work, and halted opportunities for career advancement. 

“We look forward to working with the Department of Labor (DOL) on a new rule to develop a more appropriate update to the salary threshold.”

The U.S. Chamber of Commerce led a broad coalition of national and local business groups in a 2016 challenge to the Obama administration’s overtime rule, arguing that the (DOL) exceeded its statutory authority in issuing the regulation and violated the Administrative Procedure Act.           

Donohue has led the U.S. Chamber of Commerce since 1997. The chamber says it is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.