Remember last year when everyone was getting ready for the big change to the salary threshold for the overtime exemption that was set to go into effect on December 1? And then, seemingly out of nowhere, a judge put a stop to all of those worries? Ever wonder what happened to those pesky regulations? Although we still don’t know what is going to happen, it is worth a look back and a status update.
- May 23, 2016: The DOL revised the FLSA overtime regulations to more than double the minimum salary a company must pay an employee for that employee to qualify as exempt from overtime status. The revised regulations were set to go into effect on December 1, 2016.
- November 22, 2016: Judge Amos L. Mazzant, United States District Judge for the Eastern District of Texas, issued a nationwide injunction, enjoining implementation of the revisions.
- August 31, 2017: Judge Mazzant ruled that the proposed revisions were invalid, finding that the department had exceeded its authority in making them.
On October 30, 2017, the DOL Wage and Hour Division announced that the Department of Justice had filed a Notice of Appeal of Judge Mazzant’s ruling. According to the DOL’s statement, once the appeal is docketed, the Department of Justice will file a motion to hold the appeal in abeyance until after the DOL has undertaken “further rulemaking to determine what the salary level should be.”
This announcement indicates that the DOL is in the process of modifying the revisions — potentially rendering the appeal moot — however, it needs more time to do so. As noted in the October 30 statement, the DOL is currently reviewing the submissions to a Request for Information that went out in July 2017. Given the tenor of the current administration, I suspect any new revisions will be more business-friendly than the invalid 2016 revisions. Only time will tell.