A Texas Federal Judge released a ruling on Department of Labor’s (DOL) new overtime rule on Tuesday and enjoined the rule holding that it improperly created a de facto salary test for determining which workers fall under the Fair Labor Standards Act’s so-called “white collar” exemption. The decision delays the Dec. 1 implementation of the overtime exemption salary threshold.
The new rule would raise the salary threshold for workers to qualify as exempt from overtime pay requirements from $455 to $913 per week (or from $23,660 to $47,476 per year), and increase the current minimum salary requirements for employees exempt from overtime pay under the “highly-compensated” exemption from $100,000 to $134,004 per year.
As of the drafting of this article, we are still reviewing the court’s opinion. Once the decision has be fully reviewed we shall provide an update detailing the court’s reasoning and how it effects employers.