After implementation of the new Fair Labor Standards Act (FLSA) regulations were put on hold last year, many employers and employees were left wondering whether the changes would ultimately take effect. The changes would have increased the salary threshold to be considered exempt from $23,660 to $47,476, thereby allowing potentially millions more workers to qualify for overtime pay. However, a federal judge blocked the laws implementation in November 2016. The Department of Labor (DOL) under President Obama then appealed the injunction.
In the months since then, the Trump administration has replaced President Obama’s, and it was unknown how the Department of Labor would proceed. After months of delays the DOL recently issued its response to the appeal, re-affirming its belief that the court erred in ruling that the DOL lacked authority to increase the threshold. However, it also stated that it would not be pursuing the specific increase to $913/week. Rather, it would conduct further review into what it should be. This has led observers to believe that while the increase will likely not be as high, the DOL is still considering making upward adjustments to the salary threshold. Although this increase will likely allow fewer people to qualify for overtime than the proposed legislation, it is good news for employees who feared that the threshold would not be increased at all.
Determining the level of increase may take several months. Further, if the court of appeals ultimately determines that the DOL did not have authority to make the increase, the DOL may decide not to pursue a salary threshold increase after all.
As wage and hour attorneys, we are closely monitoring any changes to federal and state labor laws, and their impact on our clients.
For more information or if you have any questions concerning your wages or overtime, please contact our experienced Atlanta wage and hour lawyers at Buckley Beal LLP for an immediate case evaluation.