Oral Argument on Overtime Appeal to Be Held on October 2

By Hilary Atkins posted 08-21-2017 03:38 PM


In the ongoing saga of the proposed changes to the overtime rules under the Obama administration, the last significant event on its trajectory was a temporary injunction issued by a federal judge in Texas last Thanksgiving. The timeline was recently updated when the 5th Circuit Court of Appeals tentatively scheduled oral argument on October 2.

By way of background, the U.S. Department of Labor (DOL) under then-President Obama issued final regulations in May 2016 that would have more than doubled the minimum salary requirement for white-collar exemptions under the Fair Labor Standards Act (FLSA). The proposed levels grew from $455 per week to $913 per week. Thus, the salary threshold would have jumped from $23,660 annually to $47,476 per year.

This pay hike under the FLSA is looking increasingly doubtful as the DOL under the Trump administration has already backed away from the governments previous position. To that end, earlier this month the DOL issued a public request for information in anticipation of a new rulemaking setting forth a lower salary level. The comment period ends on September 25, 2017.

At issue on appeal is whether the DOL has the authority to set a salary level as one of its tests for the white-collar exemption.

More to follow…