Last week, a Texas federal District Court placed a temporary nationwide injunction blocking implementation of the Department of Labor’s (DOL) new overtime rule scheduled to go into effect on December 1.
Responding to lawsuits filed by 21 states and a coalition of business groups, the court found that Congress intended for exempt status to be based on an employee’s actual duties rather than the employee’s salary, and therefore, DOL exceeded its authority by issuing a rule based on a “de facto salary-only test.” The prior overtime rules remain in effect including the duties test for exempt employees, the existing minimum salary for exempt positions ($455/week or $23,600/year), and no automatic increase in the salary threshold.
Chamber members, for now, are not required to comply to implement changes by December 1 based on the new overtime regulations. However, effective January 1, 2017, employers are required to pay $9.30 an hour or more to comply with Amendment 70.
Click here to download full version of the Grand Junction Area Chamber of Commerce December 2016 Newsletter.