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By: Jay Mittelman
In 2016, the Department of Labor decided to radically raise the minimum salary for overtime consideration. But at the last minute a federal judge temporarily blocked it. Everyone waited to see what would happen: would there be a new ruling? Would the DOL appeal?
On August 31, U.S. District Judge Amos Mazzant made that temporary ruling permanent, granting summary judgment to the groups that had challenged the Obama-era rule.
What does this mean? Actually, nothing has changed. The old rules are still in effect. The existing overtime regulations continue to apply, including the $23,660 exempt salary threshold. So employers don’t have to do anything. All the ruling does is add certainty that the proposed rule is permanently gone.
Or as permanent as anything is in Washington. The DOL may try another change, although experts believe that the Trump DOL will not raise it as high as the Obama DOL. But all that is speculation. For now, employers can continue as before, and we’ll keep you informed of any future changes.