Justice Department will not appeal decision to end federal overtime rule change Email
Wednesday, September 06, 2017 12:00 AM

 

The Department of Justice has struck down the final rule "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees under the Fair Labor Standards Act" published in 2016. The rule would have extended overtime pay for an estimated four million American workers by nearly doubling the annual salary threshold of eligibility.

On August 31, 2017, U.S. District Court Judge Amos Mazzant granted summary judgment against the Department in consolidated cases challenging the Overtime Final Rule published on May 23, 2016. The court held that the Final Rule’s salary level exceeded the Department’s authority, and concluded that the Final Rule is invalid. The case was heard in the United States District Court, Eastern District of Texas, Sherman Division (State of Nevada, et al. v. United States Department of Labor, et al., No. 4:16-CV-00731).

Please note that the Department is still accepting comments on its Request for Information (RFI), published on July 26, 2017. The RFI comment period ends at 11:59pm on September 25, 2017.

According to reporting from Bloomberg, DOL "may issue a new rule with a more moderate salary threshold bump."

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