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The Corporate CounselorFeaturesGeneral Counsel and In House CounselRegulationLJN Newsletters

Update: Stage Now Set for DOL to Adopt More Modest Salary Level for Overtime Exemptions

By Tim K. Garrett

After the September issue of The Corporate Counselor went to press, Texas Federal Judge Amos Mazzant issued a final ruling striking down the Obama-era overtime rule. An extensive discussion of the rule can be found in the January 2017 edition of this newsletter, when I wrote about Judge Mazzant's previous issuance of a preliminary injunction of the overtime rule, until he could review the case in detail and issue a final ruling. The preliminary injunction halted enforcement of the overtime rule on a nationwide basis. Enforcement of the rule would have more than doubled the minimum salary level that employers would have been required to pay in order for employees to meet the so-called “white-collar” exemptions from overtime pay requirements.

Before President Trump took office, President Obama's Department of Labor (DOL) appealed Judge Mazzant's preliminary injunction to the U.S. Court of Appeals for the Fifth Circuit. President Obama's DOL clearly wanted to save the overtime rule, asked for an expedited appeal, and was challenging Judge Mazzant's preliminary ruling as improper.

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