Last year, a federal District Court in Texas temporarily blocked the 2016 changes to the Federal Labor Standard Act’s (FLSA) overtime rule from taking effect, pending further review. The blocked overtime rule, which would have applied to the executive, administrative and professional exemptions to the FLSA’s overtime requirements, was previously scheduled to take effect on December 1, 2016.
On August 31, 2017, the Court issued a final decision, which struck down the previously stated changes to the FLSA overtime rule.
The rule, in its original state, would have nearly doubled the current salary threshold from $23,360 to $47,476, meaning a significant increase in all workers eligible for mandatory overtime pay. Estimates put this change equal to nearly 5 million currently exempt employees eligible nationwide.
On August 31, U.S. District Judge Amos Mazzant in the Eastern District of Texas said the salary level was set so high that it could sweep in some management workers who are supposed to be exempt from overtime protections, according to Reuters.
The Court’s ruling provides clarity and relief to employers everywhere. But employers still need to remain vigilant in supervising their employees’ overtime activity. Employers must continue to evaluate the FLSA status of their employees by reviewing job descriptions to ensure their employees are classified properly.