Oklahoma U.S. Sen. James Lankford suggests a Texas federal judge did the right thing Tuesday in block implementing of President Obama’s new federal overtime rule that was set to take effect Dec. 1.
“I am pleased that a Federal District Judge has, yet again, pumped the brakes on another harmful regulation from the Obama administration,” said the Senator. “This federal overtime rule is devastating for small businesses, colleges and nonprofits all across America, but particularly in states with a low cost-of-living.”
The Republican Senator said the Labor department ignored the economic realities and regional cost-of-living differences that exist in the country.
“I am hopeful that this rule can be brought back to the drawing board for a new rule-making process that works for the entire nation,” he added.
Sen. Lankford had support from Karen Kerrigan, President and Chief Executive of the Small business and Entrepreneurship Council.
“This overtime rule is totally disconnected from reality. The one-size-fits-all doubling of the salary threshold demonstrated ignorance regarding the vast differences in the cost-of-living across America,” she said.
Had the new rule been allowed to go into effect, it would have extended overtime pay to an estimated 4.2 million American workers just in time for the holidays. Mandatory overtime pay is offered only to workers paid less than $23,660 a year. But President Obama wanted to double that threshold in a move to counter inflation and rising costs of living.
A judge in the U.S. District Court of the Eastern District of Texas ruled the agency had acted beyond its delegated authority.