Pursuant to the Fifth Circuit’s order, the appeal will remain on hold pending the outcome of new rulemaking by the DOL. Although the DOL already has started on the rulemaking process, the issuance of revised final white-collar overtime regulations under the Fair Labor Standards Act (FLSA) still could be many months or even years away.
When the Obama administration issued the regulations that are the subject of the DOL appeal, the process took more than two years.
If the 2016 regulations had gone into effect, they would have more than doubled the minimum salary requirement for the FLSA’s major white-collar overtime exemptions from $455 per week to $913 per week. Annualized, that would have been an increase in the salary threshold from $23,660 per year to $47,476 per year.
In July 2017, the DOL under Acosta published a detailed Request for Information (RFI) in the Federal Register, in which it asked several questions seeking input regarding the appropriate salary level (or levels) and the duties tests for the white-collar overtime exemptions. The comment period for the RFI ended on September 25, 2017, and the DOL currently is reviewing the comments it received.
We expect that after completing its review of the comments, the DOL’s next steps will be to publish a notice of proposed rulemaking with a new set of proposed regulations in the Federal Register, which again will be followed by a comment period, analysis of those comments, and then a new final rule.
Steven (“Steve”) Pockrass is Co-Chair of the firm’s Wage and Hour Practice Group. In this position, he helps clients and attorneys throughout the firm deliver proactive and responsive solutions to federal and state wage-hour questions and concerns. Steve coordinates wage-hour resources within the firm and works on a variety of wage-related issues, ranging from evaluating whether certain job positions are properly classified to defending collective and class actions. In...