No Changes Will Be Occurring to How Overtime is Calculated

Effective 8/31/2017, Department of Labor announced No Changes Will Be Occurring to How Overtime is Calculated

A Judge in Texas struck down the Obama-era’s federal overtime rule that would have made more than 4 million currently exempt employees eligible for overtime pay.  Today, August 31, 2017, US District Judge granted summary judgment to businesses that had challenged the Obama administration’s 2016 rule that proposed to more than double —from $23,660 to $47,476—the minimum annual salary required to qualify for the Fair Labor Standards Act’s “white collar” exemptions.

Employers don’t have to make any changes based on today’s ruling.  The order is a final ruling on the matter, rather than a temporary injunction like the one issued in November 2016.

That means the existing overtime regulations—which were last updated in 2004—apply for now, including the $23,660 exempt salary threshold.