DOL Abandon's Obama Era Overtime Rule

In May 2016, President Obama and Labor Secretary Perez announced the final rule updating overtime regulations.  (We wrote about it in our blog last year, which can be found here).  The rule was significant for businesses because an estimated 4 million people were set to receive overtime protections within the first year of implementation.  Just a few days before the implementation date of the new rule, a Federal Judge in Texas placed an injunction on the rule, blocking it from taking effect.  Since then, the DOL has delayed the overtime rule three times, with the final delay ending June 30, 2017.

Just this week, President Trump's DOL has dropped the defense of the FLSA overtime rule.  The eligibility threshold would have been raised from $455 per week($23,660 annually) to $913 per week ($47,476 annually).  While the DOL dropped the defense of the rule, the agency requested that the 5th Circuit not address the validity of the $47,476 threshold, which the DOL intends on revisiting through new rule making.  That process began on June 27 with a public request for information.  While many feel that the original $23,660 threshold is out of date, many believed that $47,476 went too far.  Alexander Acosta has yet to publicly state his plans.

Continue to follow myHRcounsel for all the updates on the overtime rule!