While the issue of whether employees are properly classified as exempt is always an issue that could potentially arise, exempt status is more likely to be called into question if and when the Department of Labor (DOL) goes forward with a proposed increase in the salary amount required to qualify as exempt. It has been reported that such a proposed rule could be issued in early 2019.
ACCA lauded action by the Eastern District Court of Texas striking down the Obama administration’s overtime rule, which would have required employers to pay overtime to most salaried workers earning less than $47,476 annually, a drastic increase from the current annual salary limit of $23,660.
The rule was set for implementation on Dec. 1, 2016
November 23, 2016
A federal Texas judge has issued a nationwide injunction against the U.S. Department of Labor’s new overtime rule, stating that the administration overstepped its authority by raising the salary cap from $455 a week to $921 a week or $47,892 a year.
In just a few days millions more American workers will be eligible for overtime, thanks to a new U.S. Department of Labor (DOL) rule that takes effect on Dec. 1. And the estimated 4 million workers who become are just the beginning — every three years, the pay levels will automatically update.
Bill would delay implementation of controversial rule
October 10, 2016
ABC, along with a coalition of business groups, filed a lawsuit seeking to overturn the rule Sept. 20 in the U.S. District Court for the Eastern District of Texas. ABC also contested the provision of the rule that requires automatic updating of the threshold when announcing its lawsuit.
The new rule raises the salary threshold for overtime eligibility from $455 per week, or $23,660 per year, to $913 per week, or $47,476 per year. As a result, more than 4.2 million salaried workers across the country will now be eligible for overtime pay. Employers have until Dec. 1, when the rule becomes effective, to prepare for the changes.
The U.S. Department of Labor (DOL) has finalized controversial regulations updating the annual salary threshold that generally determines who qualifies for overtime pay when they log more than 40 hours a week.