As 2016 was coming to a close, employers scrambled to comply with the Department of Labor’s Final Rule that was set to take effect on December 1, 2016 and more than double the threshold salary for employees to be exempt from overtime. The DOL intended to increase the minimum yearly salary level for overtime exemption from $23,660 to $47,476. On November 22, 2016, the U.S. District Court for the Eastern District of Texas enjoined the DOL from implementing the Final Rule, and the DOL appealed the preliminary injunction to the U.S. Court of Appeals for the Fifth Circuit.
On June 30, 2017, the DOL filed a brief with the Fifth Circuit announcing its decision “not to advocate for the specific salary level ($913 per week)” and to instead “undertake further rulemaking to determine what the salary level should be.” The DOL requested that the Court focus only on whether the DOL has authority to establish a salary level test. The DOL also indicated that it will soon be publishing a request for information seeking “public input on several questions that will aid in the development of a proposal.”
Employers now await the Court’s decision on whether the DOL is authorized to set a minimum salary threshold. As always, attorneys at FHKAD will monitor this case as it develops. Please feel free to contact us with any questions on the Fair Labor Standards Act (FLSA).