Will we see legislation for a $15 federal minimum wage in 2021? It’s unclear. But an increase is looking more … Read more
A federal court in Texas has struck down the controversial overtime rule that would have more than doubled the salary threshold for exempt employees under the Fair Labor Standards Act (FLSA). The same judge who blocked the rule last year sided with the business groups and 21 states challenging the Obama-era regulation.
The rule would have increased the minimum salary for exemption from overtime pay from $455/week ($23,660 a year) to $913/week ($47,476 a year) — a move that would have extended mandatory overtime pay to more than 4 million U.S. workers.
In his August 31 decision, U.S. District Judge Amoz Mazzant noted that the Department of Labor (DOL) proposal placed too much importance on wages — rather than job duties — in determining worker eligibility for overtime. He pointed out that Congress directed the DOL to use the duties test, and the agency exceeded its authority by issuing a salary-level test that effectively eliminates the duties test. He added that doubling the previous minimum salary would “make an employee’s duties, functions, or tasks irrelevant if the employee’s salary falls below the new minimum salary level.”
The judge’s final decision came nine months after he issued an injunction blocking the new rule — mere days before it was scheduled to take effect on December 1, 2016.
It’s important that employers ensure workers are properly classified according to the existing ‘duties’ rules.
The stage is now set for the Trump administration to introduce a new rule with a lower salary threshold. The DOL has already started the process by issuing a Request for Information that seeks public input.
Employers can submit comments to the DOL on the appropriate salary threshold and duties for determining overtime exemption through September 25. The wide-ranging scope of the questions in the RFI indicates the DOL is open to feedback and will consider all possibilities. The process could take several months before a final rule is ready.
Considering the ongoing attention on overtime rules, it’s important that employers ensure workers are properly classified according to the existing ‘duties’ rules.
ComplyRight will continue to monitor any developments and provide updates.
Will we see legislation for a $15 federal minimum wage in 2021? It’s unclear. But an increase is looking more … Read more
Time and pay rules under the Fair Labor Standards Act (FLSA) are complicated — particularly for small businesses without the … Read more
What used to be the rare exception for a handful of employees has become more mainstream. Today, flexible scheduling is … Read more
Wage and hour violations are a frequent source of trouble for employers, where Fair Labor Standards Act (FLSA) oversights can … Read more
After months of anticipation, the U.S. Department of Labor announced the final rule on the overtime provisions under the Fair … Read more
The wait and uncertainty regarding potential new overtime regulations are over. On September 24, 2019, the Department of Labor (DOL) … Read more
In a perfect workplace, employee absences would always be scheduled well in advance. But you know the drill … Carl … Read more
Your star employees keep you smiling every day, while poor performers have you pulling your hair. And it’s usually easy … Read more
At ComplyRight, our mission is to free employers from the burden of tracking and complying with the complex web of federal, state and local employment laws, so they can stay focused on managing and growing their businesses.
©2021 ComplyRight, Inc.