Just days before it was scheduled to take effect, a Texas federal court issued a preliminary injunction that prevents the U.S. Department of Labor’s (DOL) revised overtime exemption rule from taking effect as scheduled on July 1, 2024, but only as to the State of Texas as an employer. As for all other employers covered by the Fair Labor Standards Act, the rule is taking effect as scheduled today, on July 1, 2024. The DOL’s rule seeks to significantly raise the salary level required for overtime-exempt workers and institute an automatic increase every three years.Continue Reading DOL Overtime Rule Enjoined from Taking Effect on July 1 – But Only as to the State of Texas Government
DOL Significantly Increases Salary Threshold for Overtime Eligibility
On Tuesday, April 23, 2024, the United States Department of Labor (DOL) released a final rule raising the salary thresholds to qualify for overtime exemptions under the Fair Labor Standards Act (FLSA). The rule will become effective on July 1, 2024.Continue Reading DOL Significantly Increases Salary Threshold for Overtime Eligibility
DOL Overtime Rule Struck Down
A Texas federal court has struck down the Obama-era Department of Labor (DOL) revised overtime exemption rule, which sought to more than double the salary level required for overtime-exempt workers.
The Current Test for Overtime-Exempt Status: In order to be exempt from overtime, a white-collar employee must meet three tests: (1) the salary basis test – the employee must be paid on a salary basis, not subject to reductions for fluctuations in quantity or quality of work; (2) the salary level test – the employee’s salary must currently be at least $455 per week (equaling $23,660 per year); and (3) a duties test – the employee must perform certain duties specific to the executive, administrative or professional exemption in question. There is also a highly-compensated employee exemption under which an employee must currently make at least $100,000 per year and perform at least one exempt duty.
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Overtime Rule Injunction Appealed by Obama Administration
Today, December 1, 2016, the Department of Labor issued a press release announcing that it had filed an appeal to the U.S. Court of Appeals for the 5th Circuit of the emergency nationwide injunction of the new overtime rule, which had been granted last week by Judge Amos Mazzant, as discussed in our November 23
NEW OVERTIME RULE
On May 17, 2016, the Department of Labor announced the release of its long-awaited revisions to its overtime exemption rule. The new rule doubles the salary requirement for white collar (executive, administrative and professional) employees from $23,660 per year ($455 per week) to $47,476 per year ($913 per week). The required minimum salary for the highly compensated employees’ exemption also has been raised from $100,000 to $134,004. These salary levels will be subject to automatic adjustments every three years. The new rule does not change the duties test for any of the exemptions. It will take effect on December 1, 2016. Our firm will be holding a complimentary webinar on Wednesday, May 25 to discuss the changes and offer practical suggestions on how to comply with the new rules.
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