Posts Tagged ‘increase in threshold for qualifying for overtime’

Overtime Rule Blocked, But Still in Effect, Lawyers Argue in Lawsuit Against Chipotle

Did the U.S. Labor Department’s overtime rule take effect on December 1 of last year, despite a court order banning the agency from enforcing it?

On the answer to that question may determine whether employees of fast-food eatery Chipotle get overtime they claim the company is denying them.

The overtime rule finalized under the Obama Administration more than doubles the income threshold-from $23,660 a year to $47,476 a year–under which workers must be eligible for overtime pay.

A federal court enjoined the DOL from enforcing the rule while it is subject to legal challenge by a coalition of states and businesses.

Attorneys for Chipolte employees in New Jersey argue because the injunction left the rule standing, it took effect on Dec 1, 2016.

The attorneys also argue that the injunction applied narrowly to the Labor Department but doesn’t block other parties, such as employees, from enforcing the rule in court.