Commonly known as the FLSA overtime rule, a regulation intended to modernize those governing the exemption of executive, administrative and the professional employees from the minimum wage and overtime pay protections of the Fair Labor Standards Act (FLSA). The new exemption levels for annual salary were to go from $23,660 to $47,476. This was slated to become effective 12/1/16.
BUT WAIT . . . and that, is our current status.
What happened? On November 22nd of 2016, a Texas federal judge issued a nationwide injunction for all employers blocking the DOL from implementing the new rule. Next came repeated extensions.
In the latest reply brief filed in the Fifth Circuit, the DOL stated it has decided not to advocate for the specific salary level set in the final rule at this time and intend to undertake further rulemaking to determine what the salary level should be.
It is our belief, preparations already undertaken by employers to comply with the pended regulation have not been wasted, and for that matter should continue. Update job descriptions for accuracy and ensure employees are correctly classified using the ‘duties test’ that remain in place. This work will place employers in the best position to effectively respond to changes when the time comes.