Tag Archives: FLSA

DOL APPEALS RULING STRIKING DOWN OVERTIME LAW

According the Wall Street Journal, and as anticipated, the US Department of Labor (DOL) is appealing the injunction that halted the December 1 implementation of a sweeping overtime-pay regulation, advancing a federal court battle over a rule that could face an eventual challenge from President-elect Donald Trump.

Image result for appeals court

Labor Secretary Thomas Perez and other department officials filed a notice of appeal on Thursday with the Fifth U.S. Circuit Court of Appeals in New Orleans to defend an Obama administration rule requiring employers to start paying overtime to workers earning salaries of less than $47,476 a year.  Ironically, the rule was struck down by Obama appointee, Judge Amos Mazzant of Texas.

The WSJ notes that even barring court action that could permanently block the rule, the regulation could face a challenge from President-Elect Donald Trump, who has said he would be rolling back business regulations he thinks do economic harm.  While Mr. Trump hasn’t commented specifically about the overtime-pay regulation, Republicans have criticized the rule as excessive.

What can businesses expect and how can they plan given the legal wrangling?:  businesses that did not implement the proposed, but now banned, rule, can continue to operate lawfully under the “old,” existing rule.  That rule requires  exempt, salaried workers be paid at least $23,660.

The appeals process will likely extend into 2017, be decided by the court of appeals, and then reach a crescendo and conclusion at the US Supreme Court.  Separately, expect the Trump administration, after he is inaugurated on January 20, to try and bury the proposed new rule through an administrative and/or executive action.

HR Law Insider will immediately inform businesses if there is any change in the law and what they need to do.

For further information on these or other employment, business, and HR matters, contact Art Bourque at Bourque Law Firm.

NEW OVERTIME RULE ANNOUNCED BY US DEPARTMENT OF LABOR

Today, President Obama and Secretary Perez announced that the US Department of Labor’s final rule will automatically extend overtime pay eligibility to 4.2 million workers.

Here is all you need to know about the new rule:

TIMING:  The salary increases will not go into effect until December 1, 2016.

SALARY THRESHOLD:  On December 1, the threshold to claim an overtime exemption for salaried workers is $47,476, or $913 a week.

HIGHLY COMPENSATED EMPLOYEES(HCE):  On December 1, the threshold to claim an overtime exemption for highly compensated employees moves from $100,000 to $134,004 a year.

AUTOMATIC UPDATES:  The salary threshold will be updated every three years, beginning January 1, 2020.

BONUSES, INCENTIVE PAYMENTS, AND COMMISSIONS:  The final rule will allow up to 10 percent of the salary threshold for non-HCE employees to be met by non-discretionary bonuses, incentive pay, or commissions, provided these payments are made on at least a quarterly basis.

DUTIES TEST:  The final rule does not make any changes to the “duties test” that determines whether white collar salaried workers earning more than the salary threshold are ineligible for overtime pay.

Here is a more detailed summary of the final rule.

There you have it!

For further information on this or other employment law topics, contact Art Bourque at Bourque Law Firm.

 

BREAKING NEWS: NEW OVERTIME RULES TO BE ENFORCED SOONER THAN EXPECTED

Yesterday, the US Department of Labor sent its overtime rule to the White House Office of Management and Budget (OMB). This occurred much sooner than anticipated.

The result:  because OMB review typically takes four to six weeks, the final rule will be the law of the land as early as next month.

The effect:  the new regulations will abolish the overtime exemption for all currently salaried employees that make less than $50,000 per year.  When enacted, the regulations will greatly reduce businesses’ ability to claim executive, administrative, professional, outside sales, and computer exemptions under the Fair Labor Standards Act (FLSA). The regulations will affect millions of workers  and their employers.

Here is a more in-depth article on the topic.

For further information on this or other employment law topics, contact Art Bourque at Bourque Law Firm.