ARSA: Future of Overtime Rule in Doubt

The Aeronautical Repair Station Association (ARSA) cast doubt on the future of the new overtime regulation after a U.S. District Court judge in Texas last week issued a preliminary injunction blocking its implementation and enforcement. The rule, which was set for implementation on December 1, would have nearly doubled the threshold for employees to be exempt from mandatory overtime pay and called for periodic adjustments to that threshold.

ARSA noted the rule “would have imposed a significant burden on commercial enterprise, particularly small businesses.” But with the current changeover in administrations, the association added, “the rule's future is in jeopardy as President-elect Trump’s support is unlikely and further court proceedings are months away.”

ARSA called the decision of the judge welcome relief. However, the association cautioned, “It does not eliminate all uncertainty for businesses, particularly those employers who had already planned to comply with the mandate only to have it reversed in the final two weeks before implementation.”