DOL drops defense of overtime pay rule change

The Department of Labor (DOL) indicated through legal briefs filed June 30 that it would not defend an Obama administration overtime pay rule. DOL decided not to defend the higher salary threshold of overtime pay for professional employees that had been scheduled to take effect last December. Instead, it has asked the Fifth Circuit Court of Appeals to rule on whether the department had the authority to set overtime pay based on a worker’s salary.

Twenty-one states and dozens of business groups had filed suit in the Eastern District of Texas to stop DOL from implementing rules that they said would substantially increase employment costs.

The rule would have almost doubled the threshold for exemption from overtime pay for professional employees, also referred to as “white collar” employees from $23,660 ($455 per week) to $47,476 ($913 per week). Read more.

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