Skip Ribbon Commands
Skip to main content

 Email  Share  Print

Federal Judge Blocks Obama Administration's Overtime Pay Rule

November 28, 2016

closeup of pen


​A federal district judge in Texas last week at least temporarily blocked the Department of Labor’s (DOL) overtime rule set to go into effect Dec. 1, a decision that could have a substantial impact on colleges and universities.

In a last-minute development on an issue for which many campuses have been preparing for months, U.S. District Judge Amos L. Mazzant III granted a temporary injunction in response to a legal challenge filed by 21 states and the U.S. Chamber of Commerce after the final version of the regulation was released in May.

Currently, professional and managerial employees making more than $23,660 a year are generally exempt from federal Fair Labor Standards Act (FLSA) overtime regulation. Under the new rule, employees would have had to be paid more than $47,476 to be exempt. Those making below that amount would have had to be classified as hourly workers eligible for overtime pay, which would have impacted a wide array of non-faculty employees—from athletics coaches and trainers to admissions recruiters and student affairs officers—whose work is not well suited to hourly wage status.

DOL released its proposed rule in July 2015, after being charged by President Obama in 2014 to revise the regulation governing exemptions to FLSA overtime pay requirements. Along with a number of higher education associations, ACE submitted comments on the proposed rule that identified a range of problems.

The Obama administration likely will appeal the injunction. At the moment, the timing of further developments in the case either at the district court or a federal appeals court is unclear.

Other ACE News

  • September 21, 2018

    Today's Headlines

    HEADLINES: Today's Top Higher Education News

    An opinion piece in The Washington Post argues that large research universities should consider liberal arts a vital piece of the curriculum rather than an afterthought . . . The Hechinger Report writes about a report from The Institute for College...

  • ACE Annual Meeting

    September 19, 2018

    ACE2019 Image

    Register Now for ACE2019

    Registration is open for ACE2019, ACE’s 101st Annual Meeting, March 9-12, 2019, in Philadelphia. Nearly 2,000 college and university leaders from deans to presidents will gather at the Philadelphia Marriott Downtown for the nation’s most...

  • Student Mobility

    September 18, 2018

    Fees for Student and Exchange Visitor Program Set to Increase

    The proposal to increase programs fees for the Student and Exchange Visitor Program may have a negative impact on international students, scholars, and higher education institutions, according to ACE and 14 other higher education associations.

  • Innovative Practices

    September 17, 2018

    Innovative Leadership

    College Presidents Finding New Ways to Lead Amid Growing Challenges

    A newly released ACE report highlights how innovative college and university presidents are rising to a variety of daily challenges and empowering their own campuses to take risks and respond strategically.

  • Budget and Appropriations

    September 17, 2018

    Stairs leading up

    Spending Package for FY 2019 Includes Boosts for Pell Grants, NIH, Career and Technical Education

    Congress has reached an agreement on an appropriations package for FY 2019 that includes a $100 increase in the maximum Pell Grant award and a $2 billion boost in funding for the National Institutes of Health, among other priorities for higher...


 Related Content