US DOL Confirms New Overtime Rule Coming: NYC Overtime Lawyer
US DOL Confirms New Overtime Rule Forthcoming: New York City Overtime Lawyer Shares
Yesterday, we wrote how the US Department of Labor’s (US DOL) “Final Rule” was proposed and scheduled to become effective last year on December 1, 2016. This rule change had many significant changes with overtime law, particularly as to the exemption for executive and administrative employees which had the salary threshold doubled. However, a preliminary injunction on the eve of enactment enjoined the “Final Rule.” This summer, a district court in Texas struck down the “Final Rule” for good. Notwithstanding, states and cities around the country still adopted parts of the “Final Rule” and made some changes based on it.
And also yesterday, the US DOL announced that it intends to “undertake new rule making with regard to overtime.” There is an outstanding appeal filed with the Fifth Circuit Court of Appeals, however the US DOL is going to ask the Court to “hold the appeal in abeyance while the [US DOL] undertakes further rule making to determine what salary level should be[.]”
This is significant because it will likely save the US DOL—and in turn taxpayers—money by reworking the proposed rule as opposed to trying to litigate the matter and coming back to the same result. This also means that employers will be left less in lingo over whether an appellate court like the Fifth Circuit reverses the lower court and kicks in the overtime requirements with little warning. This can be difficult and burdensome for some employers to calculate and prepare for.
The prior rule that was struck down had set the salary level for the executive and administrative exemptions at $47,476. After publishing a request for information and asking for public comment, the US DOL received more than 140,000 comments. After reviewing these comment, it appears that the new salary level will be in the low $30,000 range—or at least that is the expected level.
Once the US DOL revises this rule, the appeal could be discontinued or withdrawn and the new rule would need to be finalized, issued, and a public comment period to ensue. It is unclear, however, whether that will be successful. The prior decision striking down the rule found that the US DOL’s rule was overreaching. Even if they lower the requirement by $15,000, it will still need to overcome whether the rule in and of itself is overreaching or not.
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