Overtime Rule Clears Major Hurdle in Advance of January 1 Effective Date: Key Steps for Employers
In a major win for the Department of Labor, a federal appeals court just ruled that the agency has the power to set a salary basis floor in order for workers to be considered exempt from overtime pay. Yesterday’s ruling from the 5th Circuit Court of Appeals was by no means a slam dunk given the Supreme Court recently ripped a great deal of power from federal agencies and told federal judges they should exercise their own independent authority when ruling on these types of rules. But a three-judge panel from the conservative appeals court agreed with the agency and upheld the salary basis floor just months before a new rule takes effect on January 1 to raise the minimum salary level to about $59K . What do you need to know about the ruling and what should you do in the coming months to prepare for the impending effective date? What Were We Arguing About? Let’s start by taking a big step back. Congress passed a federal wage and hour law almost 90 years ago – the Fair Labor Standar...