DOL Announces Plans to Revise Overtime Rule, Seeks Ruling on Regulatory Authority

Employment Law

In a court filing last week, the Labor Department asked a federal appeals court to affirm the Department's regulatory authority to use a salary level test to determine eligibility for overtime pay, telling the court that it "intends to undertake further rulemaking to determine what the salary level should be."  The final Obama-era rule would have doubled the salary threshold to $47,500 and automatically indexed it every three years.  However, a federal judge issued a nationwide injunction just before the rule was set to take effect on December 1, 2016.  The injunction suggested that the Department may lack the authority to promulgate any increase in the salary level test.  In the court filing, DOL noted that it will publish a request for information (RFI) seeking public input on several questions that will aid in the development of a proposal.  The Association will submit comments when the RFI is published, urging the Department to consider a broader scope of issues, including the antiquated duties tests applied to those who earn more than the minimum salary.