Late last week, the Texas Federal District Court Judge who entered the injunction in November that initially prevented the Department of Labor from enforcing the 2016 overtime rule dismissed the lawsuit which ruled that the Department of Labor overstepped intentions in determining who should be exempt from overtime pay.
Judge Mazzant found the Obama administration’s rule relied too heavily on salary without regard for job duties. As a reminder, the salary threshold proposed by the Department of Labor was to have increased from $23,660 to $47,476 annually.
The dance with respect to finalization of this overtime rule is not over. An appeal of the injunction is still pending before the 5th Circuit Court of Appeals, and the Trump administration’s Department of Labor is already working on plans to rewrite the overtime rules.
What does this mean for employers? We will continue to monitor the situation and bring you updates, however we know that the Trump administration believes the change is too much too fast. Whether consensus can be reached and with what changes are the outstanding questions.
While we wait for final guidance, continue to make sure exempt employees meet the appropriate duties test, and are paid on a salary basis, and a minimum of $455 per week.