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 form300 Log401(k)8(a)(1)AccommodationAffordable Care ActAmericans with Disabilities ActARPAAuditsBackground screeningBilingualBonusesBusiness ExpensesCannabidiol (CBD)CDLCFPBChild laborCHIP NoticeChristmas partyClearinghouseCOBRACommercial Motor Vehicle DriverCompany CultureCompensationConcerted ActivityConstructionconsultstuContagious diseaseCoronavirusCraft BeerDepartment of LaborDisabilitiesDiscriminationDOTDownsizing and RestructuringDress CodeDriversDrug and AlcoholDrug Free WorkplaceE-VerifyEEO-1 FormEEOCEmployee benefitsEmployee HandbookEmployee IllnessEmployee InjuryEmployee MisconductEmployee PoliciesEmployee RecognitionEmployee RightsEmployment PosterERISAEssential functionsExecutive OrderExempt EmployeeExit InterviewFair Credit Reporting ActFair Labor Standards ActFall ProtectionFederal ContractorsFFCRAFinancial Well-beingFitness for DutyFlorida rulesFluencyFMCSAFMLAForm 5500Form W-4Fractional HRGender Non-conformityGeneral HR QuestionsGoal SettingGroup Health InsuranceHarassmentHiringHolidaysHR ComplianceHR CostsHR ResourcesHR softwareHuman ResourcesHuman TraffickingI9 FormImmigrationIndependent ContractorIndividualized AssessmentInjury StatisticsInsuranceInvestigationsIRSJob DescriptionJob PostJoint EmployerLeave of AbsenceLeaving a PEOManagerMedical ExamsMedical MarijuanaMinimum WageMoraleNational OriginNew HireNLRBNo-match letterOnboardingOpioidsOSHAOutplacementOvertimePaid LeavePay CardsPay or PlayPaycheck Protection ProgramPayrollPayroll Protection ProgramPerformance Improvement PlanPerformance ReviewPersonnel FilePost offer medical questionnairePostersPregnancyReasonable AccomodationRecall LetterRecord KeepingRecruitingReligionRestaurantsResumeRetaliationRetentionRetirementRewardsRisk ManagementSafetySalaried employeesSBASection 7 RightsSelf AppraisalSick LeaveSMART goalsSocial MediaSocial Security cardStart upTaxesTemporary EmployeeTerminationTipped EmployeesTitle VIITPD BenefitsTrainingUnemploymentUniformsUSCISVaccinesW2W4Wage and HourWellness programWork from HomeWorkers CompensationWorkplace MonitoringWrap Plans
Show All Categories
Show Less Categories
Archives
Need on-going HR support?
We have affordable HR retainers that offer a unique alternative to full HR outsourcing or the hiring of a full time HR employee. We design unique solutions to match your business strategy and budget. We have a proven track record of helping companies from many industries. We listen and probe to understand your needs and goals, before we offer recommendations and realistic solutions.
Contact Us Now