The new overtime pay regulations were set to go into effect on December 1, 2016. However, a nationwide injunction was entered prior to the effective date. On August 31, 2017, the federal court rules in favor of the various states and businesses and invalidated the Department of Labor’s new overtime pay regulations. The DOL also dismissed its appeal of the injunction order.
So, what does this mean? This means that the overtime rules regarding the required minimum salary for overtime exempt employees has not increased since August 2004 and most likely will not increase in the near future.
Remember, an employee is exempt from overtime pay if he or she meets certain tests regarding the employee’s duties and is paid on a salary basis that is not less $455.00 per week. Also, keep in mind that the minimum salary for highly compensated employees (“HCE”) is $100,000.00.
Laura M. Trujillo
Disclaimer: This blog is for information purposes only. Legal advice is provided only through a formal, written attorney/client agreement.