Texas Court Blocks $47,476 Overtime Rule

by Evil HR Lady on November 23, 2016

The Obama Administration made sweeping changes to the Fair Labor Standards Act(FLSA), which changed the threshold for salary “exemption” from $23,000 per year to $47,476 per year ($913 per week). Yesterday, Texas Judge Amos L. Mazzant III blocked the implementation of this law.

This is a temporary injunction, which means that the change can be implemented at a later date, depending on how the pending court cases are decided. Of course, with President-Elect Trump expected to appoint a much more business friendly Labor Secretary, it’s possible that this regulation change will not come back.

Employment Lawyer Jon Hyman explains that this case hinged on the fact that the “new, higher salary level improperly swallows the rest of the exemption test and makes salary alone dispositive on the issue of exemption qualification.”

To keep reading, click here: Texas Court Blocks $47,476 Overtime Rule

{ 4 comments… read them below or add one }

mer November 23, 2016 at 1:39 pm

Bad link in the “to keep reading, click here:”

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Evil HR Lady November 23, 2016 at 2:25 pm

Thanks. Fixed.

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Keith M November 23, 2016 at 9:23 pm

I was happy when I saw this. I think the people who were going to be impacted were mostly college grads a few hours out of school who probably actually want to have the flexibility to do extra hours if it means practicing a new computer program or reading up on extra work topics or taking on extra projects in areas they eventually want to grow into.

I have an entry level employee now who wants to do programming but doesn’t have the experience, and he can get it here as long as he works an extra hour or so per day to fit it in. I get better work in the long run and he gets line items for his resume. He couldn’t expand his skills in that area if he had to rush out the door at 7 hours and 59 minutes.

Not to mention the $47K threshold seems to high. Yes, the $23K was too low, but even being in an expensive area, $40K or even the high $30Ks would have been fine.

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Slippy November 25, 2016 at 5:03 pm

Actually this affects way,way, way more people than you think. Most retail first and second line managers will be affected as well a large number of the fast food industry low level managers. I agree pegging the number at something is tricky, but there is so much variation that at some point you just need to pick a number and go with it.

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