The status and ultimate fate of the Department of Labor’s proposed new rules on the white-collar overtime exemptions has been the source of much discussion. Recent events have shed some light on what employers might expect going forward.
First, in an appeal brief filed earlier this month, the Department of Justice has abandoned its defense of the amount of the increased salary thresholds in its appeal of the November 2016 decision which enjoined the effectiveness of the new rule.
The DOJ did continue its appeal, however, in order to preserve the DOL’s right to set a salary threshold in the first place.
Second, in June 2017 the DOL transmitted a Request for Information (RFI) to the White House’s Office of Management and Budget (OMB) for review. Once approved by OMB, the RFI will officially open the floor for public comments on several issues related to rules for the white-collar exemptions. This is a signal the current DOL is contemplating drafting a new rule.
Finally, during his confirmation hearings new Secretary of Labor Alex Acosta suggested the threshold salary for the white collar exemptions be raised to a range around $33,000 per year. This is, of course, significantly less than the threshold proposed in the 2016 rule.
What this means for employers:
These actions, taken as a whole, mean the drastic change in the proposed rule from 2016 will likely never come to fruition. However, the DOL will likely propose new changes that will still increase the salary threshold but by a significantly lower amount than that originally proposed.
For more information or if you have further questions about labor and employment law, please contact one of our attorneys. Click here for more about this practice group and a list of attorneys.
This news alert is created by the attorneys in Labor & Employment Practice Group at Friday, Eldredge &Clark, LLP. The information provided is not a substitute for legal advice and should be considered for general guidance only. Please contact one of our attorneys for specific legal advice regarding this matter.