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In Our Judgment

The official Frantz, McConnell, and Seymour, LLP blog.

Take Two on Overtime Rule/Changes

Take Two on Overtime Rule/Changes
We are now approaching the 3rd anniversary of the United States Department of Labor’s (DOL) efforts to raise the minimum salary of those workers who can be deemed “exempt” from federal law overtime requirements.  Under current federal law, in order to be exempt from overtime requirements, an employee (1) has to perform executive, administrative, or professional duties (the “duties test”); (2) has to be paid a set weekly salary that does not change based upon the number of hours worked (the “salary level test”); and, (3) has to be paid at least $455.00 per week ($23,660.00 annually).  This last criteria is referred to as the “minimum salary test.”  The minimum salary test is the subject of the ongoing effort to change current law.  Despite the protracted debate, most everyone agrees an annual salary of $23,660.00 is too low a threshold and that it needs to be raised. 
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UPDATE: TEXAS FEDERAL COURT BLOCKS IMPLEMENTATION OF NEW OVERTIME RULES

UPDATE: TEXAS FEDERAL COURT BLOCKS IMPLEMENTATION OF NEW OVERTIME RULES

Public and private employers throughout the United States received an early holiday gift from a United States district court in Texas on November 22, 2016. As I have discussed previously in this blog, the United States Department of Labor (DOL) issued new rules earlier this year substantially changing the federal law criteria for determining which employees can be deemed “exempt” from overtime requirements. Those new rules were to go into effect December 1, 2016. Currently, to be considered exempt from overtime requirements, an employee had to perform executive, administrative, or professional duties (the “duties test”); had to be paid a set weekly salary that did not change based upon the number of hours worked (the “salary level test”); and, pertinent to the current discussion, had to be paid at least $455.00 per week ($23,660 annually). This last criteria is referred to as the “minimum salary test.”

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