Fair Labor Standards Act Overtime Rule Overturned
This time last year, employers were making plans to implement the new Fair Labor Standards Act (FLSA) Final Overtime rule. However, days before the effective date, a United States District Court judge in Texas granted an emergency motion for preliminary injunction, essentially maintaining the status quo until the court could determine the U.S. Department of Labor’s (DOL) authority to almost double the salary threshold.
On Aug., 31, 2017, District Court Judge Amos Mazzant granted summary judgment against the DOL, concluding the Final Rule is invalid. The 18-page memorandum went through the history of the Fair Labor Standards Act, which was originally enacted in 1938. However, the analysis section highlighted how the DOL’s Final Rule made the overtime status “depend predominately on a minimum salary level,” excluding many employees who perform exempt duties, ultimately failing to carry out Congress’ unambiguous intent for the white-collar exemption to apply to employees who perform “bona fide executive, administrative, or professional capacity” (EAP) duties.
While the Final Rule was struck down this time, it’s not the last time we will hear about FLSA salary adjustments. In July, the DOL opened a 60-day public comment period with the intention of rewriting the overtime regulations. We will keep you apprised on any updates as they develop.
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