CLIENT ALERT: Texas District Court Invalidates Obama Overtime Pay Rule
September 6, 2017 – A U.S. Department of Labor (“DOL”) rule that expanded overtime protections to millions of white collar workers was struck down recently by the United States District Court for the Eastern District of Texas. On August 31, 2017, Judge Amos Mazzant granted summary judgment to dozens of states and business groups that challenged the rule, which was adopted by the Obama administration, determining that the DOL improperly raised the minimum salary threshold required to qualify for the overtime provisions of the Fair Labor Standards Act (“FLSA”) to $47,000 per year.
The DOL will seek to revise that threshold at a point somewhere between the previous level and the level set by the Obama administration and has begun the process of seeking public feedback on potential revisions of the Obama overtime provisions. Click here to read Client Alert analyzing the Court’s decision.