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The Final Decision on the DOL’s Overtime Rule Is...

It’s the moment you’ve all been waiting for. On August 31, a federal judge in Texas struck down the federal overtime rule that would have made more than four million currently exempt employees eligible for overtime pay.

The proposed rule would have required that an employee must have a guaranteed salary of at least $47,476 to qualify as exempt, which is more than double the current minimum salary of $23,660. It was originally scheduled to go into effect on December 1, 2016, before an emergency motion for filed in October halted its implementation.

The recent ruling constitutes a final decision, meaning the existing overtime regulations, including the $23,660 exempt salary threshold (which were last updated in 2004) still apply.

It is possible for the DOL to challenge the final ruling, however this seems unlikely. Secretary of Labor, Alexander Acosta, said he recognizes that the salary threshold needs to be increased (though not as high as the proposed rule would have required) and has sent a request for information on the 2016 overtime rule to the Office of Information and Regulatory Affairs. This request for information marks the first step in determining how to increase the existing exempt salary threshold, while ensuring that it remains reasonable.

If you’d like to submit a comment, the DOL is currently accepting feedback regarding changes to the salary threshold. And, if you have any other questions please contact our advocacy team.

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