On August 31, 2017, a Texas federal court held that the Department of Labor's (DOL) 2016 Final Rule, which more than doubled the minimum salary levels required for overtime exemptions under the Fair Labor Standard Act (FLSA), was invalid.
As a result, the DOL filed
an unopposed motion dismissing its appeal of a previously issued nationwide preliminary injunction of the Final Rule. The Fifth Circuit granted the DOL's motion on September 6, 2017. The move appears to signal the intent of the
DOL to abandon the 2016 Final Rule and move forward with a new rulemaking process to update the overtime regulations.
The Final Rule was published by the DOL in May 2016 and was initially scheduled to take effect on December 1, 2016.
Under the Final Rule, the minimum salary level for employees to be exempt from overtime increased from $455 to $913 per week. The Final Rule also created an automatic updating mechanism to adjust the minimum salary level every three years, with the first automatic increase scheduled to occur on January 1, 2020.
On July 26, 2017, the DOL initiated a Request for Information (RFI) seeking public input to
assist in formulating a proposal to revise the FLSA regulations, including questions related to the salary level and duties tests for the FLSA's overtime exemptions.
The comment period for the RFI is scheduled to end on September 25, 2017.