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Federal Judge Strikes Down DOL "White Collar" Overtime Rule

As reported by NADA this morning....

On August 31, in a case brought by NADA and other business groups, the federal District Court for Northern Texas found that the U.S. Department of Labor (DOL) had acted unlawfully in 2016 when it revised its overtime compensation exemption for "white collar" employees. Agreeing with NADA and the other business groups, the Court found that by more than doubling the exemption's salary-level threshold tests from $455/week ($23,660/year) to $913/week ($47,476/year), the DOL undercut the exemption's "duty" tests, unreasonably preventing its application to certain workers. For now, the lower "white collar" salary thresholds remain in effect as they have since before the Court enjoined enforcement of the new thresholds in 2016. Note: the DOL is in the early stages of considering revisions to the "white collar" exemption that would be both lawful and acceptable to employers and employees alike.

For questions on this or any other wage and hour issue, contact Sara Bruce or Matt Chacey on the OADA Legal Hotline, 614-923-2243, or 614-923-2232. 

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