Tag Archives: salary basis

Fifth Circuit Grants Request to Delay Appeal on Federal Overtime Rule

The appeal regarding the validity of the federal overtime rule will not be fully briefed until May 1, 2017, according to an order issued by the Fifth Circuit on February 22, 2017, granting an unopposed request by the Department of Justice for an extension. When the Department of Labor first appealed the nationwide injunction issued … Continue Reading

Fifth Circuit Grants Government Request for Additional Time to State Position on Overtime Rule

Before the election the Department of Labor asked the Fifth Circuit Court of Appeals to expedite its appeal regarding the validity of the DOL’s Final Rule, which increased the salary level for the white collar exemptions.  Earlier this week, however, following the inauguration of President Trump, the Department of Labor made the opposite request, asking … Continue Reading

DOL Requests Additional Time to “Consider Issues” Before Filing Reply In Support of Salary Basis Rule

Earlier today, the Department of Labor filed an unopposed motion to extend the deadline for its next submission in support of its appeal of the salary basis rule injunction.  The motion for extension requested until March 2, 2017 to submit the Department’s reply brief to the Fifth Circuit, and expressly stated that the extra time … Continue Reading

Sen. Sanders, Other Members of Congress, File Amicus Brief in Support of DOL Salary Basis Regulation

Sen. Bernie Sanders, along with twenty-five other members of Congress, have filed an amicus brief in the Fifth Circuit Court of Appeals urging the Court to reverse the injunction issued by a Texas federal judge enjoining enforcement of the Department of Labor’s recent increase to the salary basis threshold for the white collar exemptions under … Continue Reading

DOL Requests Expedited Ruling on Appeal of Preliminary Injunction, But Appeal Will Not Be Decided Before Trump Administration Under Proposed Schedule

On December 2, one day after filing its appeal of the preliminary injunction blocking its new salary basis regulations, the DOL filed a request for expedited briefing and oral argument in the appeal.  The DOL has requested that the Fifth Circuit Court of Appeals set an expedited schedule whereby briefing would be complete on February … Continue Reading

Did the DOL Salary Basis Regulations Just Get Trumped?

Jackson Lewis Principal Eric Magnus contributed to this post. The U.S. Department of Labor regulations raising the required salary level for the white collar exemptions (executive, administrative, and professional) under the Fair Labor Standards Act are scheduled to become effective December 1, 2016.  Since the results of Tuesday’s election, some employers are considering whether to … Continue Reading

Legislation To Delay Overtime Rule Passed By The House Of Representatives

The U.S. House of Representatives yesterday voted 246 to 177, largely along party lines, in favor of legislation which would delay the rule’s effective date by six months, from December 1, 2016, to June 1, 2017.  Prior to the anticipated late night vote on the bill in the House, Senator James Lankford (R-Okla.) introduced the legislation … Continue Reading

Legislation Introduced To Delay Overtime Rule

Following a pair of lawsuits aimed at blocking the Labor Department’s “white collar” overtime rule, House Subcommittee on Workforce Protections Chair Tim Walberg (R-Michigan) introduced legislation which would delay the rule’s effective date by six months, from December 1, 2016, to June 1, 2017.  The proposed legislation, entitled The Regulatory Relief for Small Businesses, Schools, and … Continue Reading

States and Business Groups File Separate Challenges To OT Rule

The anticipated legal challenges to the Department of Labor’s Final Rule regarding the salary level for white collar exempt employees were lodged yesterday through two separate lawsuits filed in the Eastern District of Texas.  State of Nevada et al v. United States Department of Labor et al, E.D. Texas 16-CV-731; Plano Chamber of Commerce et … Continue Reading

Congress Approves Puerto Rico’s Reprieve From Salary Basis Increase

As discussed in detail here, the Senate has approved the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”).  Among other provisions, PROMESA stays applicability of the new salary basis rule to Puerto Rico until the Comptroller General of the United States further analyzes the economic impact of such application, and the Secretary of Labor (taking the … Continue Reading

DOL Announces Salary Threshold

News outlets are reporting that the new salary basis rule will take effect on December 1, 2016, and require a salary of $47,476 per year ($913/week).  Reports also indicate that the new rule will require an update of the salary threshold every three years, as opposed to annual increases.  This effective date provides employers a … Continue Reading

DOL Expected To Issue Final Regulation Regarding Overtime Exemptions On Wednesday

The Department of Labor is expected to issue its long-awaited Final Rule regarding the white collar exemptions on Wednesday, at an event in Ohio attended by Vice President Biden and Secretary Perez, Politico reports.  It is expected the Final Rule will increase the salary level requirement for white collar exemptions to approximately $47,000, and provide … Continue Reading

Sources Reporting Salary Basis Threshold In Final Rule Lowered to $47,000

Multiple sources are reporting that the DOL’s Final Rule regarding the exempt status salary basis threshold will set the minimum salary at approximately $47,000 per annum, rather than the previously-reported $50,440.  While the Office of Management and Budget (OMB) is still reviewing the proposed rule, the rule may clear OMB within the next few weeks, … Continue Reading

When Will The DOL Issue Final Regulations Increasing The Salary Basis Threshold?

Since the United States Department of Labor announced its intention, in response to the President’s directive, to more than double the salary basis necessary to qualify for the “white collar” exemptions from overtime, the business community has swung into action. Employers and associations have both been lobbying for a more modest increase to the minimum … Continue Reading

The Confusing Array of Wage Hour Developments Impacting New York State Employers’ Wage and Hour Compliance

In prior posts, we have summarized the New York State Department of Labor’s most recent rulemaking processes, comprised of two separate wage boards. The first, in 2014, addressed the hospitality industry as a whole, while more recently, in 2015, another highly publicized wage board addressed the subset of that industry deemed “fast food.” Employers should … Continue Reading

Preview To Exemption Regulations: White House Announces Drastic Salary Basis Increase

White House coverage reports that the revamped white collar exemption regulations will be released this week, and will include a salary basis requirement more than double the current federal level. Reports peg the new salary basis requirement at $50,440 per year, or $970/week, with future adjustment linked to the 40th percentile of income. This news … Continue Reading

Tenth Circuit: Isolated Deduction Does Not Defeat Salary Basis For Exempt Salaried Employees

Compliance with salary basis requirements is one pre-requisite for exempt status under the FLSA’s “white collar” exemptions.   A recent decision issued by the Court of Appeals for the Tenth Circuit analyzed this requirement and upheld the employer’s salary basis of payment, rejecting the Plaintiff’s claim that an isolated deduction from an exempt employee’s salary destroys … Continue Reading

USDOL Regulatory Agenda Indicates Delay In New White Collar Exemption Rules

In its new regulatory agenda, the Department of Labor has indicated that its proposed rules remaking the traditional FLSA “white collar” exemptions in response to March’s Presidential directive will not be provided until February, 2015.  The employer community eagerly awaits guidance from the Department, particularly given the uncertainty and litigation which followed in the wake … Continue Reading

Joining Second Circuit, First Circuit Rejects Highly Compensated Workers’ Challenge to Salary Basis Test

The “highly compensated” regulation is designed to relax the exempt status tests for the white collar exemptions for individuals who make more than $100,000 per year in total compensation.  29 C.F.R. § 541.601(a).  Nevertheless, challenges to exempt classification of such workers can arise, with the employee claiming he or she still was non-exempt based on … Continue Reading
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