New Overtime Rules Overturned

In late November 2016, a federal judge placed a preliminary injunction on the Department of Labor’s overtime rule scheduled to go into effect on December 1, 2016. The rule would raise the salary exemption for overtime pay under the Fair Labor Standards Act (FLSA) from $23,660 to $47,476 per year. The FLSA exempts executive, administrative and professional positions from overtime pay requirements. Pay is one of the determinants of whether a position falls into this category. The Department of Labor last updated the pay standard in 2004.

A coalition of state attorneys general and business interests filed suit against the Department of Labor, saying it disregarded the requirements of the FLSA and simply adjusted pay requirements without looking at actual job functions, and that it exceeded its authority. The Department of Labor is considering challenging the decision.

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