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DOL To Take Another Look at Overtime Final Rule

Overtime rule to get clarification

October 30, 2017
Judge Mazzant ruled that the Department of Labor had exceeded its authority in the overtime rule

The Department of Justice, on behalf of the Department of Labor, filed a notice to appeal the decision of U.S. District Court Judge Amos Mazzant last August regarding the Overtime Final Rule published May 23, 2016.

The Obama-era rule would have doubled the salary threshold of workers - to $47,000 per year - at which time workers would be automatically entitled to overtime pay for all worked hours beyond 40 hours per week. Labor Secretary Alexander Acosta had signaled the threshold should be $32,000.

Judge Mazzant ruled in August that the Department of Labor had exceeded its authority in the overtime rule, saying the DOL focused on salary levels instead of job duties.

By filing an appeal, DOL will gain more time to review the more than 140,000 public comments on the regulation and formulate an amended rule.

Today's statement from the Department of Labor said:

The U.S. Department of Labor today announced plans to undertake new rulemaking with regard to overtime.

On July 26, 2017, the Department of Labor published a Request for Information (RFI) regarding the Overtime Final Rule, which was published on May 23, 2016, asking for public input on what changes the Department should propose. That comment period has ended and the Department is reviewing those submissions.

On August 31, 2017, U.S. District Court Judge Amos Mazzant granted summary judgment against the Department of Labor in consolidated cases challenging the Overtime Final Rule. The court held that the Final Rule’s salary level exceeded the Department’s authority, and concluded that the Final Rule is invalid.

On October 30, 2017, the Department of Justice, on behalf of the Department of Labor, filed a notice to appeal this decision to the U.S. Court of Appeals for the Fifth Circuit. Once this appeal is docketed, the Department of Justice will file a motion with the Fifth Circuit to hold the appeal in abeyance while the Department of Labor undertakes further rulemaking to determine what the salary level should be.

image: Amano

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