Update on Proposed Changes to Federal OT Regulations
September 1, 2017
Category: Legal Updates
As we wrote in our June update, the Obama administration raised the minimum salary requirement for major “white collar” exemptions from $455/week to $913/week. In July 2017, the Department of Labor (“DOL”) filed its long-awaited reply brief with the 5th Circuit regarding the new minimum requirements. The DOL did not seek to reinstate the Obama’s minimum salary level. The DOL did, however, ask the Court to find that the DOL has authority to set a salary test.
Notably, the DOL did not ask the 5th Circuit to put the case on pause while it revises Obama’s overtime rule. The DOL’s decision to not put this case on pause may inadvertently allow the rule to take place before a replacement is ready. However, many still predict that changes will be made to Obama’s overtime rules.
What does this mean for you? Employers should remain alert for any new rule-making that aims to change the $913 salary threshold.
For more legal updates, check out our update for September 2017!
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