Human Resources |
On August 31, a federal judge in Texas struck down the Obama-era federal overtime rule that would have raised the minimum salary level for exempt employees under the Fair Labor Standards Act from $23,660 to $47,476. Ruling in favor of more than 55 business groups, U.S. District Judge Amos Mazzant criticized the U.S. Department of Labor for using a salary-level test to determine which workers are exempt from overtime compensation and excluding so many employees who perform exempt duties. This ruling brings closure to the rule, which had been blocked shortly after the November election.
While the ruling has national significance, the Department of Labor under President Trump has issued a Request for Information and may issue a new proposed rule in the coming months. NBOA and NAIS sent a survey to all member schools on August 17 and are currently shaping a joint response to the RFI that they will submit by DOL’s deadline of September 25.
“Although the decision may be appealed, this ruling brings much needed clarity to the fate of the higher salary threshold, which had been uncertain since the same Texas court issued a national injunction in November 2016,” said Grace Lee, NBOA’s vice president of legal affairs. “However, we may see a new set of proposed regulations under the Trump administration. The recent Request for Information is one indication that new changes, including a smaller salary level increase, may be forthcoming. In the meantime, independent schools may continue to use the existing federal overtime threshold of $23,660.”
NBOA has been tracking this issue for well over a year. See these links on NetAssets.org for related information:
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