On Aug. 31, a Texas federal judge invalidated the expansion of the federal overtime rule. As the rule was originally written, the salary threshold for employees to qualify as exempt from overtime pay requirements was increased from $23,660 per year to $47,476 per year.
District Court Judge Amos L. Mazzant found that the Department of Labor does not have the authority to use a salary level test that would effectively eliminate the duties test. He also noted that the mechanism that would automatically adjust the threshold was unlawful.
This rule was originally scheduled to take effect on Dec. 1, 2016. A preliminary injunction was issued on Nov. 22, 2016. In other words, the rule was never actually in force. This ruling addresses part 541 of the regulations defining executive, administrative and professional employees. If you have employees meeting this exception to the overtime rule, the salary threshold will remain at $23,600 per year.
There is a request for information out currently from the DOL to determine if there is a more appropriate salary threshold for this exemption. It is possible that the department will change the threshold at some point, and we will communicate any proposed changes.
For now, if you have workers making more than $23,660 per year who do meet the definition of executive, administrative or professional employee under part 541 of the rule, they are eligible for the overtime exemption.
The Texas Cotton Ginners’ Association contributed this information. Contact TCGA at 512-476-8388.
Nov. 15: PCCA Board Meeting, Lubbock, Texas
Dec. 5-7: Cotton Board/Cotton Incorporated Joint Meeting, St. Petersburg, Florida
Dec. 20: PCCA Board Meeting and Delegate Body Meeting, Lubbock, Texas
Jan. 3-5: Beltwide Cotton Conferences, Marriott Rivercenter Hotel, San Antonio, Texas
Feb. 9-11: NCC Annual Meeting, Omni Hotel, Fort Worth, Texas