In late 2016, President Obama called for changes in the nation’s overtime rules that more than doubled the minimum salary at which white collar workers could qualify for an overtime exemption.
The change, which at the time it was finalized would have extended the overtime eligibility to more than 4 million workers, was enjoined by a federal judge days before its Dec. 1 effective date, and that decision is currently on appeal with the Fifth Circuit Court.
The looming question – how would the Trump Administration act in this matter?
Well – the Department of Labor (DOL) has just announced it will not defend the salary levels in the Obama era overtime rule before the Fifth Circuit.
Does this mean the matter is dead?
There are two things to watch now.
The DOL did request confirmation from the Circuit Court that the agency has the authority to set an overtime exception salary threshold.
According to the brief filed with the court, the DOL plans to undertake a further review of the matter and propose a revised threshold in the future.
It is expected that threshold will be lower than the $913 per week minimum that President Obama had proposed.
Interestingly, it is unclear what will happen to the Obama era rule if the 5th Circuit Court reverses the Circuit Court’s injunction ruling. Will such an act by the 5th Circuit cause the Obama rule to take effect?
No one seems to know.
So stay tuned. We will have more to report on this important employment law matter as news becomes available.
If you’re an employer with questions about labor and employment laws, consider calling on the attorneys at Kainen, Escalera & McHale in Connecticut. We do one thing and one thing only – we are an employer defense law firm – in fact, we are one of the largest employer defense law firms in the region. What’s more, each of our attorneys have over 20 years of experience in employment law and labor law matters and can provide your business with comprehensive legal counsel ranging from assistance with necessary preventive measures to trial advocacy. Please contact us if we can help you.
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