On August 31, 2017, Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas struck down the 2016 regulations that would have extended overtime eligibility to an estimated 4.2 million workers, reasoning that the United States Department of Labor (the "DOL") exceeded its authority. In December 2016, Judge Mazzant had issued a nation-wide injunction staying the implementation of these regulations.
The DOL has not abandoned its goal of updating the overtime regulations, however. The new Labor Secretary, Alexander Acosta, has made reviewing the overtime regulations a priority on his agenda. Indeed, Secretary Acosta has acknowledged that the current Fair Labor Standards Act ("FLSA") minimum salary level of $23,660 does not account for inflation, but has asserted that the 2016 salary threshold of $47,476 was too large an increase. To advance this agenda, the DOL issued a Request for Information ("RFI") in June 2017.
This Stroock Special Bulletin provides an overview of the current federal overtime regulations, the District Court's decision, the RFI, and New York State regulations that incrementally increase the salary threshold for certain employees in New York.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
