Overtime Rule Struck Down by Texas Court

A Texas federal court has “struck down the Obama-era Department of Labor rule that would have significantly expanded overtime eligibility” under the Fair Labor Standards Act (FLSA). The ruling “continues to delay any implementation of the overtime rule”, but employers should still pay close attention to any new developments as the Department of Labor may continue to pursue legislation changes.

From JD Supra:

Originally scheduled to go into effect Dec. 1, 2016, the final rule significantly expanded overtime eligibility by raising the salary threshold (also known as the salary level) necessary for employees to qualify as “exempt” from overtime pay, as previously reported in MayJune and November 2016 McGuireWoods legal alerts.

The final rule more than doubled the salary threshold, from $455 to $913 per week (and from $23,660 to $47,476 per year), and increased the salary threshold for “highly compensated” employees, from $100,000 to $134,004 per year. Also, under the final rule, the salary threshold was scheduled to automatically update every three years based on certain economic “indexing” benchmarks, with the first update to occur Jan. 1, 2020.

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