A federal judge in Texas on August 31 invalidated the Obama Administration's controversial rule expanding the number of employees that are entitled to overtime pay. The focus of the judge's opinion was the fact that the rule -- which would have increased the minimum salary threshold for overtime pay from approximately $23,000 per year to approximately $47,000 per year -- insufficiently considered whether employees actually perform "white collar" jobs and thus should be exempt from overtime.
The rule, which was initially scheduled to go into effect in December 2016, was placed on hold in November 2016 by the same judge who issued the August 31 opinion.
The Trump Department of Labor, meanwhile, is currently examining regulations governing overtime pay eligibility and has asked for public comment regarding what changes, if any, are necessary. It is expected that the Administration will ultimately increase the salary threshold by a more modest amount than the Obama Administration's rule. The Trump Administration is not expected to tie the salary threshold to inflation, another controversial component of the Obama regulation.
NATSO will be filing comments with the Department of Labor outlining its members' positions on the overtime regulations.
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