Changes to Overtime Rules – UpdateDownload
By: Gregory P. Kult (Greg.Kult@WoodenMcLaughlin.com)
On June 13, 2016, we wrote about the U.S. Department of Labor’s (“DOL”) Final Rule regarding the executive, administrative, and professional (“white collar”) exemptions from the overtime requirements of the federal Fair Labor Standards Act. The Final Rule was included in the May 23, 2016 Federal Register and was supposed to take effect December 1, 2016. The Final Rule would have, among other changes, raised the minimum salary required for an employee to qualify for a white collar exemption from $455 per week ($23,660 annually) to $913 per week ($47,476 annually), with automatic periodic updates.
What a difference a year makes! On August 31, 2017, a federal court in Texas issued an order that the Final Rule is invalid. This is the same court that, on November 22, 2016, issued a nationwide injunction prohibiting the Final Rule from going into effect on December 1, 2016. The combination of the injunction and the court order invalidating the Final Rule means that the Final Rule never went into effect and now is deemed invalid for all purposes. Put a different way, the rules applicable to the white collar exemptions that were in place prior to December 1, 2016 have remained and continue to remain in effect. The DOL could appeal the court order invalidating the Final Rule; however, that seems unlikely because, on July 26, 2017, the DOL issued a Request for Information in which it is soliciting comments concerning the salary and duties tests for the white collar exemptions.
Although we don’t have a crystal ball, signs point to the DOL considering a second bite at the apple in the form of issuing a different set of amended rules for the white collar exemptions, presumably after considering responses to the Request for Information. If you wish to provide the DOL with your thoughts before the DOL issues a new rule, follow the instructions in the Request for Information and submit your comments to the DOL by September 25, 2017. You can access the DOL Request for information https://www.federalregister.gov/documents/2017/07/26/2017-15666/request-for-information-defining-and-delimiting-the-exemptions-for-executive-administrative.
Please contact any of the following members of our Employment Law team with questions.
Gregory P. Kult, (317) 860-5341, Greg.Kult@WoodenMcLaughlin.com
Michael Rabinowitch, (317) 860-5372, Michael.Rabinowitch@WoodenMcLaughlin.com
Greg Freyberger, (812) 401-6151, Greg.Freyberger@WoodenMcLaughlin.com
Crystal S. Wildeman, 812) 401-6151, Crystal.Wildeman@WoodenMcLaughlin.com
Maureen E. Ward, (317) 860-5377, Maureen.Ward@WoodenMcLaughlin.com
This article does not constitute legal advice, nor is it a substitute for familiarity with the most current statutes, regulations, ordinances and case law on this topic. Slight differences in factual context can result in significant differences in legal obligations. Consider seeking legal advice with respect to any particular situation.