Tuesday, November 22, 2016

BREAKING: DOL Overtime Regs Enjoined Nationwide!

Not official use.
A Texas federal court has concluded that the DOL's new overtime regulation (effectively doubling the minimum salary requirement for the white collar exemptions) is unlawful and has issued a nationwide injunction. Yes, you read that right... the court is blocking implementation of the new rule nationwide.

You can read the opinion here:

The gist of the decision:
The Department has admitted that it cannot create an evaluation “based on salary alone.” Id. at 23. But this significant increase to the salary level creates essentially a de facto salary-only test. For instance, the Department estimates 4.2 million workers currently ineligible for overtime, and who fall below the minimum salary level, will automatically become eligible under the Final Rule without a change to their duties. Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees, 81 Fed. Reg. 32,391, 32,405 (May 23, 2016). Congress did not intend salary to categorically exclude an employee with EAP duties from the exemption.