Future of the Overtime Rule

Remember that overtime regulation that was supposed to take effect on December 1, 2016?  It would have doubled the Fair Labor Standards Act’s (FLSA’s) salary threshold for exemption from overtime pay from $23,660 to $47,476. Then in November, 2016 there was a federal court decision that halted the rule.  Now what can we expect?

That probably depends on whether the current nominee for Secretary of Labor is confirmed.  Alexander Acosta was questioned during a March 22 confirmation hearing before the Senate Health, Education, Labor and Pensions Committee.  At that time he said that he believed the salary threshold figure should be somewhere around $33,000 after adjusting for the cost of living since the last time the threshold was adjusted back in 2004.  He has not said what he thinks of the pending litigation, but he did suggest that if confirmed the Department of Labor will review the rule and possibly make changes.  Acosta even said that he is not sure whether the dollar threshold would supersede a duties test, and therefore not be in accordance with the law.  He said he would consult with officials at the Department of Justice to make a determination.

The Senate Committee is expected to approve Acosta’s nomination this week.  If approved it will then go to a full senate vote.  If confirmed Acosta said he would put all Department of Labor regulations through a review.  Stay tuned for more changes in 2017.