A United States District Judge has ruled that the Obama Administration overstepped its legal authority in proposing that the exemptions to overtime pay under the Fair Labor Standards Act be premised on vastly higher salary amounts than under previous law. The Obama regulations were originally slated to go into effect on December 1, 2016, but the same Judge had issued a Preliminary Injunction in November, 2016 delaying that date.
The Obama Administration appealed that Preliminary Injunction Decision in December, 2016 and, for the moment, that appeal remains pending, as it has not been discontinued by the Trump Administration. The pending appeal on the Preliminary Injunction Decision did not prevent the Judge from invalidating the proposed new regulations on the merits, and the Trump Administration now has a month to decide whether to appeal the new Decision. That appeal is not expected; rather, the Trump Administration is expected to come out with its own set of proposed new overtime exemption regulations with a smaller minimum salary increase. In the meantime, please do not hesitate to contact us with any overtime questions.