Tuesday, September 19, 2017

Texas Court Invalidates DOL Overtime Rule

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PNN: Overtime Requirements

On August 31, a Texas federal district court ordered that the U.S. Department of Labor's (DOL) rule, which would have increased the minimum salary threshold for exempt “white collar” employees from $455 to $913 per week, is invalid [Nevada v. U.S. Department of Labor, No. 4:16-CV-731 (E.D. Texas, 8-31-17)].

In doing so, the court confirmed a preliminary order issued in November 2016 that temporarily blocked the rule from taking effect. The court said that the higher salary level impermissibly undercut the effectiveness of the duties test. The court also found the mechanism that would have adjusted the salary level for inflation was invalid.

Earlier in the legal proceedings, the DOL signaled that it would revise the regulation and has published a request for information in the Federal Register. Comments are due by September 25. Until new regulations are issued or there is a successful appeal of this decision, the current salary threshold and duties test remain in effect.

Pay News Now will continue to monitor the evolution of the DOL’s overtime rule as it unfolds in the coming months. Comment below and let us know what you think of the federal court’s decision to block increasing the minimum salary threshold for exempt “white collar” employees.