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Payroll Today

Update: Overtime salary threshold regs go back to the drawing board

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The Department of Labor had until June 30 to file an appellate brief defending the Obama administration’s regulations that raised the amount employees must earn to be exempt from the Fair Labor Standards Act overtime pay requirements to $913 a week, up from $455.

Bottom line: While the DOL is defending its ability to impose the salary-level test in general, its appellate brief makes clear that it’s not defending that particular increase.

Reg and lawsuit recap

In May 2016, the DOL issued final regs that raised the guaranteed weekly salary an employee must earn to be considered FLSA-exempt to $913 a week, from $455. That amounts to $47,476 per year. In November 2016, a federal trial court granted a nationwide preliminary injunction, which prevented those regs from going into effect on Dec. 1, 2016.

The gist of the trial court’s ruling was that the DOL had no authority to even devise the salary-level test in the first place, al...(register to read more)

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