Update On Overtime Rule

Volume 16, Issue 4
March 14, 2017

As we reported in November 2016, a Texas federal court has temporarily stopped the Department of Labor (DOL) from implementing its new overtime rule 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). The new rule was to go into effect on December 1, 2016, but has been stayed by a federal court in the Eastern District of Texas pursuant to two lawsuits filed by a group of 21 states (including Nevada) and the U.S. Chamber of Commerce.

As you may remember, in December 2016, the DOL appealed the Texas court's ruling to the U.S. Circuit Court of Appeals for the Fifth Circuit. That appeal is still pending. In February 2017, the DOL asked the Court for an extension of time to file its final brief in the appeal until May 1st. The additional time was requested on behalf of the DOL "to allow incoming leadership personnel adequate time to consider the issues."

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.