Overtime

The Obama administration’s controversial overtime rule is now dead in the water. Today, a Texas federal court ruled in favor of the 55 state and business plaintiffs who challenged the rule and argued that the DOL had exceeded its authority when it doubled the salary threshold from $455/week to $913/week. This case is now over and the Obama overtime rule is invalidated. (more…)

Since 2014 when President Barack Obama directed the DOL to “modernize” the overtime law, the new overtime rules were announced, published, revised, published again, finalized, legally challenged and then judicially blocked. Just when we thought the rules were dead in the water, the overtime ride forges ahead once again. Last week, the DOL published a Request for Information (RFI) asking interested parties 11 specific questions regarding the application and challenges of the overtime rules. The request for public comment signals that the DOL is going to take another stab at updating the overtime rules but leaves the question as to what those updates may be.
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While President Obama’s landmark overtime expansion is pending in a Texas federal court, on May 2, 2017, the Republican House passed the Working Families Flexibility Act (H.R.1180/S.801) by a vote of 229 – 197, which would change overtime pay in the private sector, as we know it. Not one Democrat voted for the bill and Senator Elizabeth Warren called the bill a “disgrace” on Twitter. In opposition to the Act, the National Partnership for Woman & Families calls the Act “harmful, smoke-and-mirrors legislation” as it believes that the Act would set up a false choice between time and money. Why is everyone so up in arms about the Act? Let’s take a look . . .
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This is a brief update to the court machinations in the DOL’s appeal of the Texas Court’s decision to issue a preliminary injunction barring the implementation of the Final Overtime Rule. That appeal is now before the Court of Appeals for the Fifth Circuit, generally known as an employer-friendly circuit.
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May 16th may be a significant day for employers across the country. After more than two years of debate, analysis and overall panic from employers across the country, this is the deadline that was widely reported when the final overtime rule would be published by the Office of Management and Budget (OMB). Don’t panic. As of the time of this posting the final overtime regulations HAVE NOT been published but if it is not today, it is definitely soon. The regulation change will impact the exempt status of employees in virtually every industry and has created one of the most significant challenges to face employers in the last decade. It is high alert time.
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