If HR professionals and business owners remember anything about 2016, it may very well be the scramble to prepare for the December 1 effective date for the Department of Labor's new overtime rules.  The rules would increase the salary threshold for executive, administrative, or professional (EAP) workers from $455 per week ($23,660 per year) to $913 per week ($47,476 per year).  They also would increase the salary of highly compensated employees from $100,000 per year to $134,004 per year.

 

So whatever happened with those rules?  You may recall that on November 22, 2016, a federal district court in Texas enjoined the Department of Labor (DOL) from implementing and enforcing them on the grounds that "Congress defined the EAP exemption with regard to duties, which does not include a minimum salary level."  Shortly thereafter, the federal Department of Labor appealed this decision to the United States Court of Appeals for the Fifth Circuit.  The states challenging the rule filed their appellate brief on January 17.  With the inauguration of President Trump on January 20 and the stalled appointment of a new Secretary of Labor, however, the appeal has been delayed.  Specifically, the DOL has sought two extensions to the deadline for filing its brief.  The most recent extension request, which was filed on February 17, seeks until May 1 to file the government's brief.  The request, which is unopposed, is made on the grounds that the additional time would "allow incoming leadership personnel adequate time to consider the issues."

 

Further action on the appeal appears to be postponed for now, and it is possible that the Trump Administration may decide to abandon the appeal altogether.  If that happens, the injunction against the implementation and enforcement of the rules would remain in effect.  While we await the Trump Administration's next step, HEC will continue to monitor and update members as new developments occur.