By Jill Scheetz, PHR, SHRM-CP
Remember that work you put into verifying the exempt status of your workers and minimum salary requirements back in late 2015 and early 2016? Well, that was all for naught…kind of.
On August 31, 2017, a federal judge in Texas granted a summary judgment to numerous business groups that had challenged the 2015 Obama administration proposal, which was made rule in 2016 by the U.S. Department of Labor but blocked by a temporary injunction issued by the same Texas court last November. The August 2017 ruling makes the overtime rule invalid, unless appealed by the DOL, which seems unlikely with the current administration.
This means that the minimum salary requirements under the Fair Labor Standards Act are back to the 2004 requirements of $455 weekly ($23,660 annually). However, we may not have heard the end of this topic under the Trump administration. Actions taken by Alexander Acosta, the U.S. Secretary of Labor, indicate that they may be looking for some sort of increase, but probably not to the level proposed by the Obama administration.
I also point out that the FLSA white collar exemption tests still remain, and employers should be certain that all employees classified as salaried, or exempt, should pass the duties test, which can be found on the FLSA or DOL websites. You can also contact me at 215-997-7270 or [email protected] to assist you in determining the status of employees of whom you’re uncertain.