ConsultStu

Obama Overtime Rule is Invalidated

On August 31, a federal judge hearing the case challenging the validity of the Obama Administration’s controversial new overtime regulation ruled that the key provisions were unlawful. The regulations, developed in 2016, had nearly doubled the salary level required to qualify a worker for an exemption from overtime (the Fair Labor Standards Act’s “white collar” executive, administrative and professional (“EAP”) exemptions, changed from $455 per week ($23,660 annually) to $913 per week ($47,476 annually). The case was pending since November 2016, when the judge ihad blocked the enforcement of the regulations from taking effect on December 1, 2016.

The judge ruled that workers, who were clearly intended to meet the overtime exemption regulations, would have lost their exemption, and thereby making the “duties” portion of the salary test irrelevant. In addition, the judge found that automatically increasing the salary level every three (3) years was unlawful. Although the salary test in the Final Rule was invalidated (due to high level), his ruling did not prevent a rule going forward that adjusts the salary level higher than the current level. In fact, the judge noted that the Department of Labor could have adjusted the salary figure for inflation (the last salary adjustment was in 2004) without an issue because the salary figure would still be operating as it had in the past – more as a floor. The Trump Administration’s Secretary of Labor Alexander Acosta has already stated that a more reasonable salary level would be around $33,000.

Bottom line – employers should continue to use the current “white collar” exemption test which is $455 per week, when determining if an employee is exempt from overtime pay under the Fair Labor Standards Act.

Consultstu LLC provides fractional HR services to small/mid businesses that lower operational costs, improve business processes and maintain compliance. We deliver customized HR and safety solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

HR Categories

1095C form 300 Log 401(k)8(a)(1)Accommodation Affordable Care Act Americans with Disabilities Act Arbitration ARPA Audits Background screening Bilingual Bonuses Business Expenses Cannabidiol (CBD)CDC CDL CFPB charity Child labor CHIP Notice Christmas party Clearinghouse COBRA Commercial Motor Vehicle Driver Company Culture Company Property Compensation Compliance Concerted Activity CONNECT Construction consultstu Consultstu Team Contagious disease Coronavirus Craft Beer Department of Labor Direct Threat Disabilities Discrimination DOT Downsizing and Restructuring Dress Code Drivers Drug and Alcohol Drug Free Workplace E-Verify EEO-1 Form EEOC Employee benefits Employee Handbook Employee Illness Employee Injury Employee Misconduct Employee Policies Employee Recognition Employee Referral Employee Rights Employment Poster ERISA Essential functions Executive Order Exempt Employee Exit Interview Fair Credit Reporting Act Fair Labor Standards Act Fall Protection Federal Contractors FFCRA Financial Well-being Firearm Fitness for Duty Florida rules Fluency FMCSA FMLA Form 5500 Form W-4 Fractional HR FTC Gender Non-conformity General HR Questions Goal Setting GPS Group Health Insurance Harassment Hiring Holidays HR Compliance HR Costs HR Resources HR software HSA Human Resources Human Trafficking I9 Form Immigration Independent Contractor Individualized Assessment Injury Statistics Insurance Interviews Investigations IRS ITA Job Description Job Post Joint Employer K1 Leave of Absence Leaving a PEO Management Manager Medical Exams Medical Marijuana mental health Military Appreciation Minimum Wage Morale National Origin New Hire NLRB No-match letter Non-complete Agreements Onboarding Opioids OPT OSHA Outplacement Overtime Paid Leave Pay Cards Pay or Play Paycheck Protection Program Payroll Payroll Protection Program Performance Improvement Plan Performance Review Personnel File Post offer medical questionnaire Posters Pregnancy Publix Immigration Certification Reasonable Accomodation Recall Letter Record Keeping Recruiting Religion Remote employees Restaurants Resume Retaliation Retention Retirement Rewards Risk Management Safety Salaried employees SBA Section 7 Rights Self Appraisal Sick Leave SMART goals Social Media Social Security card Start up Taxes Temporary Employee Termination Tipped Employees Title VII TPD Benefits Training Unemployment Uniforms USCIS Vaccines Volunteer W2 W4 Wage and Hour Wellness program Work from Home Workers Compensation Workplace Monitoring Workplace Violence Wrap Plans

Show All Categories

Show Less Categories