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Apr 10, 2017

DOL gets more time to consider defense of overtime rule

Wage and Hour 

The U.S. Fifth Circuit Court of Appeals has granted a request by the U.S. Department of Labor (DOL) to wait until May 1, 2017, to file a written brief stating its position on a lower federal court’s blocking of the DOL’s overtime rule. As we previously reported, a federal district judge in Texas placed a temporary hold on the DOL’s new FLSA overtime regulations, which would have significantly increased (nearly doubled) the minimum salary required for workers who are exempt from overtime.

Under the Obama administration, the DOL asked for an expedited appeal to the Fifth Circuit; now, under direction from the Trump administration, the DOL says it needs more time to consider its position. Meanwhile, the federal district court in Texas is deciding whether its temporary hold should be made permanent. If that happens, the DOL will have another opportunity to appeal.
 
Bottom line: The new overtime rule is still tied up in litigation. For now, the old minimum salary of $455 per week for workers to be exempt from federal overtime rules continues to apply.

See our Legal Guide, “When Is an Employee Exempt Under Federal Law”. Also keep in mind that state law (California in particular) may require a higher salary. If you have any questions about whether a specific employee meets the salary and duties tests to qualify for exemption from overtime, contact your Vigilant employment attorney.

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