Signaling end of overtime rule, DOL will seek public input on new regs

June 08, 2017 0 COMMENTS

On June 7, Secretary of Labor Alexander Acosta said he will soon formally request the public’s input on new overtime regulations. The announcement signals that the U.S. Department of Labor (DOL) likely will drop its defense of former President Barack Obama’s overtime rule, according to one expert.

A request for information (RFI) likely will be filed with the White House’s Office of Management and Budget (OMB) in the next two to three weeks, Acosta told lawmakers during a budget hearing of the House of Representatives’ Committee on Appropriations.

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‘Breathtakingly radical’: Acosta questions legality of any overtime threshold

March 23, 2017 0 COMMENTS

President Donald Trump’s nominee for secretary of labor has questioned whether the U.S. Department of Labor (DOL) has the authority to set any salary threshold for overtime pay—not just the pending increase that would raise the threshold to $47,476.

Alexander Acosta volunteered that concern twice during his March 22 confirmation hearing, despite no questions from lawmakers to that effect. A former DOL economist who worked under President Barack Obama called Acosta’s statements “breathtakingly radical,” noting that an overtime threshold has been in place since 1938.

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Overtime rule update: District court won’t wait for appeals court’s ruling

January 04, 2017 0 COMMENTS

On January 3, a federal district court judge said he won’t halt proceedings in the case challenging the U.S. Department of Labor’s (DOL) new overtime rules despite concurrent litigation in the U.S. 5th Circuit Court of Appeals.

The rules, which were scheduled to take effect December 1, 2016, would have required employers to pay overtime to employees earning less than $913 per week ($47,476 annually).

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New York adopts higher salary thresholds for exempt employees

December 29, 2016 0 COMMENTS

by Charles H. Kaplan
Sills Cummis & Gross P.C.

Employers in New York must increase the salaries of exempt executive and administrative employees by December 31 to meet the requirements of recently adopted regulations. Employers also must decide whether to increase exempt employees’ salaries each year to match annual increases required by the new regulations.

On December 28, the New York State Department of Labor (NYSDOL) adopted regulations that will increase the minimum salary thresholds for executive and administrative employees under the wage and hour provisions of New York state’s Labor Law. The Labor Law does not require a minimum salary for exempt professional employees.

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Puzder hearing set for January, Dems defend overtime rules

December 28, 2016 0 COMMENTS

The Senate has scheduled a January confirmation hearing for President-elect Donald Trump’s pick for secretary of labor.

Trump’s nomination of Andy Puzder, CEO of CKE Restaurants, was the death knell for the U.S. Department of Labor’s (DOL) new Fair Labor Standards Act (FLSA) overtime regulations, according to John Husband, a partner at Holland & Hart in Denver and an editor of Colorado Employment Law Letter.

It already was expected that the Trump DOL would withdraw the department’s appeal of an injunction blocking the rules, but Puzder’s nomination solidified that prediction, Husband previously said.

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Puzder nomination could be the end of overtime rules

December 13, 2016 0 COMMENTS

The president-elect’s nomination of Andy Puzder for secretary of labor may very well be the final nail in the coffin for the new overtime rules.

Puzder, CEO of CKE Restaurants, has been an outspoken critic of President Barack Obama’s employment initiatives for years. Several of those efforts, especially the overtime rules, are dead given Puzder’s appointment, says John Husband, a partner at Holland & Hart LLP and an editor of Colorado Employment Law Letter.

The overtime regulations, which would have required employers to pay overtime to all employees earning less than $913 per week ($47,476 annually), were scheduled to take effect December 1. With just days to spare, a federal district court judge issued a temporary injunction halting the rules’ implementation. The U.S. Department of Labor (DOL) appealed the injunction order to the U.S. 5th Circuit Court of Appeals, which agreed to fast-track its review. Still, the expedited schedule puts final briefings after the inauguration.

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Movement on overtime rules unlikely before Trump takes office

December 06, 2016 0 COMMENTS

The U.S. Department of Labor (DOL) has requested that an appeals court fast-track its appeal of an injunction blocking the new overtime regulations. But even if the court agrees to the DOL’s proposed expedited schedule, it wouldn’t take action on the injunction until at least February, weeks after President-elect Donald Trump takes office.

The department filed an appeal with the U.S. 5th Circuit Court of Appeals on December 1. It argued that a federal district court judge’s injunction halting the rules “rests on an error of law and should be reversed.” The judge called into question the DOL’s authority to establish a salary basis test for overtime eligibility under the Fair Labor Standards Act (FLSA). In its appeal, the DOL argues that the 5th Circuit has already sanctioned the test in previous opinions.

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‘Unlawful’ overtime rule temporarily blocked

November 23, 2016 0 COMMENTS

A federal district court temporarily blocked the U.S. Department of Labor’s (DOL) new overtime rule on November 22, just days before it was scheduled to take effect. The judge who issued the order called the regulation “unlawful” and said such actions should be left to Congress.

At the request of 21 states, the U.S. District Court for the Eastern District of Texas granted an emergency injunction halting the regulation, which would have required employers to pay overtime to employees earning less than $913 per week ($47,476 annually) beginning December 1.

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States, business groups file suits to halt DOL’s overtime regs

September 21, 2016 0 COMMENTS

by Kate McGovern Tornone

Twenty-one states and several employer interest groups filed lawsuits against the U.S. Department of Labor (DOL) on September 20 alleging the agency’s new overtime regulations exceed its authority. The suits, however, are not expected to have any success in the near future, and employers would be well served to be in compliance by the December 1, 2016, deadline, according to one expert.

Background

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Employers need to be ready for new overtime rule by December 1

May 18, 2016 2 COMMENTS

The flurry of speculation is finally over. The White House and the U.S. Department of Labor (DOL) have released the new final rule governing which workers must be paid overtime. The changes aren’t quite as drastic as what employers were preparing for based on the contents of the proposed rule made public last summer, but the final rule more than doubles the amount workers must earn to qualify as exempt from the law’s overtime pay requirement.  3D Man Overtime Clock

The changes mean some 4.2 million more employees across the country, according to White House estimates, will be eligible to earn overtime pay when the new final rule takes effect on December 1.

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