Court determines proposed overtime rule is invalid

On August 31, the United States District Court for the Eastern District of Texas determined that the proposed Department of Labor overtime exemption rule changes were invalid, thus leaving in place the long standing salary exemption threshold. The threshold sets a minimum level at which your employer may qualify you as exempt, and thus not entitled to overtime. The new rule would have raised that bar, making millions more workers entitled to overtime compensation. The current salary threshold is $23,660 and the rule would have increased that threshold to $47,476. The rule was challenged by numerous states and business groups.

Just days before the final rule was to go into effect in December 2016, the Court had issued an injunction, blocking the rules implementation. After months of speculation, the Court has sided with the plaintiffs. Workers right groups supported the changes to the salary threshold as it had not been altered since 2004 and often unfairly excludes workers who don’t perform management or other “white collar” duties from earning overtime pay.

The blockage of the new rule serves as an important reminder to review how your employer classifies you – whether exempt or non-exempt. In addition to questions concerning your salary, your classification as exempt or not depends on your duties. These duties are defined as executive, administrative or professional.

For more information, or if you have any wage and hour question, please contact our experienced Georgia FLSA attorneys at Buckley Bala Wilson Mew LLP for an immediate case evaluation.

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