In a decision that likely puts an end to the Obama Administration Department of Labor’s (DOL) controversial overtime rule, which would have doubled the so-called salary threshold for overtime pay eligibility under the Fair Labor Standards Act (FLSA), a federal court in Texas issued a decision on August 31, 2017, invalidating the rule. The same court had issued a temporary order last December blocking the rule shortly before it was scheduled to go into effect.
As a result of the court’s latest ruling, the government announced that it is dropping its appeal of the order blocking the rule from going into effect. And although the government has 60 days to appeal last week’s decision invalidating the rule, all signs suggest instead that the Trump Administration DOL will have free rein to proceed with its announced plans to reexamine the issue in anticipation of proposing a new rule.
Along those lines, and as we previously reported, DOL is requesting public input on issues it should consider in developing a new rule.
A copy of the district court’s decision in Nevada v. U.S. Department of Labor, No. 4:16-CV-00731-ALM (E.D. Texas August 31, 2017), is available online here.
Members of the Center for Workplace Compliance (CWC) can read more here.