Update On DOL Overtime Rule

Volume 16, Issue 7
May 17, 2017

Remember the new overtime rule adopted by the Department of Labor (DOL) that significantly raised the minimum salary requirement necessary to exempt from overtime many white-collar employees (specifically executive, administrative, professional, outside sales, and computer employees)? You may remember working hard to come into compliance with the new rule before its proposed effective date of December 1, 2016. You may also remember that in November, 2016 , a Texas federal court temporarily stopped the DOL from implementing the new rule after a group of 21 states (including Nevada) and the U.S. Chamber of Commerce challenged the legality of the rule.

The DOL's appeal of the Texas court's ruling is still pending before the U.S. Circuit Court of Appeals for the Fifth Circuit. In April, the Fifth Circuit Court granted the DOL's third request for an extension of time to file its reply brief in the appeal. As a result, the case will not be heard until at least the summer. On April 27, the U.S. Senate confirmed President Trump's nominee for Secretary of Labor, Alexander Acosta. It is expected that Secretary Acosta will now determine whether the DOL will continue to pursue the appeal or allow the Texas court's ruling to stand.

We will continue to keep you posted on this matter.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.