A federal judge in Texas today struck down the controversial Obama-era change to the federal Fair Labor Standards Act that was intended to substantially raise the minimum salary threshold required for employees to qualify for the “white collar” exemptions. This signifies another nail in the coffin for the so-called “overtime rule,” which was originally blocked in late November 2016, and has since faced a very uncertain future given the subsequent change in White House leadership.
In any event, it is likely the U.S. Department of Labor will propose another version of the rule in the coming months, so employers should be prepared for more changes.
Remember that this rule only affects the salary threshold. The “job duties” test for exempt employees has remained the same.
For more information on this current event:
https://www.natlawreview.com/article/employer-victory-fifth-circuit-judge-invalidates-2016-overtime-regulations
For more information on the exemption from overtime rules:
https://www.dol.gov/whd/overtime/fs17a_overview.pdf
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