The DOL Punts Again and Delays the Appeal of the Obama Administrations Overtime Rules Another 60 Days

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10/21/2017

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The DOL Punts Again and Delays the Appeal of the Obama Administration's Overtime Rules Another 60 Days

 By: Jarred Lieber

Last week, the Fifth Circuit granted the Department of Labor (“DOL”) yet another extension to file its reply brief in the appeal of the Obama Administration’s proposed changes to the federal overtime rules. The DOL’s brief is now due on June 30, 2017.

The proposed overtime rules, explained here, seek to increase the federal “white collar” overtime exemption from $23,660 to $47,476. Twenty one states opposed the new rules and filed suit to block it.  On November 22, 2016, the states achieved a ruling temporarily blocking the new laws from going into effect (here), and the, then President Obama led, DOL appealed the decision to the Fifth Circuit.  This is the third extension the President Trump led DOL has received as the Administration continues to await the confirmation of a Secretary of Labor with Andrew Puzder withdrawing his nomination in February and current nominee R. Alexander “Alex” Acosta still awaiting confirmation.  

COUNSEL TO MANAGEMENT:

While the Obama Administration’s proposed overtime rules appeared dead in the water with President Trump’s election victory, the continued delays along with Acosta’s confirmation hearing testimony suggesting that he is open to raising the exemption threshold (here) raise some doubt.  As a reminder, when both state and federal minimum wage laws are in play, an employer is required to follow the standard most beneficial to the employee. The California “white collar” overtime exemption is tied to California’s minimum wage and is currently at $43,680 for employers with 26 or more employees. The Saqui Law Group will continue to monitor the appeal and will continue to keep you informed of any new developments in this matter as well as all important employment and labor law developments.

 

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