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
new regulations
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.…
National Retail Federation Report Takes Aim at Overtime Reform, Cites Likely Employer Response
In a lengthy report entitled “Rethinking Overtime” commissioned by the National Retail Federation, Oxford Economics analyzes the likely impact on businesses of the anticipated rise in the salary required for exempt status, one of the expectations of the Department of Labor’s review of the exemption regulations. The report, available here, notes that only…
An Open Letter to the Department of Labor Concerning The Proposed Changes To Exemptions for White Collar Regulations
As employers prepare themselves for potentially unwelcome proposed revisions to the white collar regulations that are expected to pose operational, business and compliance challenges, we offer the following five suggestions to the Department for the purpose of assisting the agency with simplifying and streamlining the regulations consistent with the President’s directive:
- Address holistically the
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DC Judge Leon Also Vacates New Definition of “Companionship Services”
On the heels of his ruling vacating the DOL’s new rule (which was scheduled to be effective January 1st) rendering the FLSA’s companionship exemption unavailable to “third party” employers of companions, Judge Richard Leon has now issued a companion decision vacating the new, substantially narrowed definition of “companionship services” contained in the same…
DOL Policy Statement Delays (Government) Enforcement of Home Care Overtime Rule
In response to pressure from state governments and others fearing the increased cost of home care services, the Department of Labor announced Tuesday that it would delay its own enforcement of the new rule requiring that previously-exempt “companions” receive minimum wage and overtime. The DOL’s Policy Statement stated that the DOL would not…
GAO Study Highlights Need for “Systematic” Approach to DOL Review of Regulations
The President’s recent directive to revise the federal wage-hour regulations includes a directive to simplify these rules. This simplicity mandate ties in to a recent Government Accountability Office (GAO) study analyzing the year-over-year increase in FLSA litigation. The GAO study found that a decrease in DOL guidance regarding the law and a failure…