Action on Hold Over Federal Overtime Regulations
March 9, 2017
Employers remain in limbo while the fate of overtime awaits a court decision. The U.S. Department of Labor now has until May 1, 2017, to form its arguments and file its briefs regarding the legitimacy of its latest overtime modifications. Counties should know that enforcement of the new overtime regulations are on hold until a final decision is reached.
Counties may recall that DOL issued new federal overtime regulations last May which would have significantly increased the Fair Labor Standards Act’s (FLSA’s) weekly salary and annual compensation thresholds for exemption from overtime pay. The regulations were originally scheduled to take effect December 1, 2016, but were put on hold by a federal district court in Texas which issued a nationwide injunction against the enforcement of the new rules.
The case is currently pending in the U.S. Court of Appeals, awaiting the federal government’s reply brief which was originally due in late January. Since President Trump took office, two requests for extensions have been filed and granted. The most recent request sought to extend the deadline to May 2017 to “allow incoming leadership personnel adequate time to consider the issues.”