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U.S. District Court Strikes Down 2016 Federal Overtime Rule

Posted on September 05 2017 06:51 PM

Further Regulatory Developments May Be Forthcoming

The U.S. District Court for the Eastern District of Texas has invalidated the U.S. Department of Labor’s (DOL) 2016 overtime rule, which sought to alter the salary level needed for executive, administrative, and professional employees to be deemed exempt from federal minimum wage and overtime pay requirements. While this court ruling is likely to end the principal litigation over the rule, the DOL is still examining whether to adjust the salary level.

How Should Employers Move Forward?
For now, executive, administrative, and professional employees will generally continue to qualify for an exemption from the federal minimum wage and overtime pay requirements if they are compensated on a salary basis at a rate not less than $455 per week ($23,660 annually) and perform certain job duties outlined by the DOL. However, on July 26, 2017, the DOL published a request for information (RFI) seeking new public input on whether to revise the salary level for the executive, administrative, and professional employee exemptions, a move which may be a precursor to a new rule altering those exemptions. If there are any further changes, we will issue an updated news alert.  

Click here to read the district court’s ruling.

Our Fair Labor Standards Act section features additional information on exemptions from federal minimum wage and overtime requirements.