DOL Seeks Changes to Overtime Rule

This morning, Bloomberg reported that the U.S. Department of Labor (DOL) plans revisions to its overtime rule, which has been in limbo since last year. In a reply brief, it asked the Fifth Circuit Court of Appeals to affirm the department’s right to use salary levels to determine who is eligible for overtime pay.

“The Department requests that this Court not address the validity of the specific salary level set by the 2016 final rule ($913 per week), which the Department intends to revisit through new rulemaking,” the brief stated. Bloomberg reports that the DOL will instead seek authority to set a salary threshold under which workers are automatically eligible for overtime pay for hours worked beyond 40 per week.

The overtime rule, originally slated to take effect December 1, 2016, would have raised the salary level for white-collar exemptions from $23,660 to $47,476 per year with automatic increases every three years. It was put on hold by a Texas District Court judge just days before implementation.

MSEC will continue to follow this story closely.