About 2,400 University of Michigan employees will not be getting the raises or overtime eligibility they were expecting today.
The university says that's because a Texas federal court ruled last week to temporarily block an Obama administration overtime pay regulation that was supposed to take effect on December 1 .
The new regulation would almost double the current pay cut-off for overtime eligibility, raising it to $47,476.
"We took the rule seriously in the beginning," said Rick Fitzgerald, spokesperson for the University of Michigan. "And we're taking this court ruling seriously until it's resolved.
"The University of Michigan did what many schools did which was to pause on that implementation and wait to see until this gets clarified by the courts." Fitzgerald said.
According to Fitzgerald, before the Texas federal court's order, the university had planned to comply with the new rule by increasing the pay, effective December 1, of about 1,156 employees to meet the revised salary threshold of $47,476 to be considered exempt from overtime pay. It also had planned to reclassify 1,244 employees, effective December 1, as hourly employees eligible for overtime.
In full disclosure, Michigan Radio staff are employees of the University of Michigan.
