Last Call for Feedback on DOL Overtime Exemption

Last month, the U.S. Department of Labor (DOL) released a highly-anticipated request for information (RFI) on the overtime regulations put forward by the Obama Administration.  The regulations would increase the overtime salary level to $47,476, which is double the current level, and call for automatic adjustments every three years.

The rule was originally scheduled to go into effect on December 1, 2016.  However, it was delayed due to the issuance of a nationwide preliminary injunction blocking the rule by the U.S. District Court for the Eastern District of Texas.  The Trump Administration dropped its appeal of the preliminary injunction in light of another recent ruling.  That means the rules as proposed by the Obama Administration are probably dead.

In the RFI published in the Federal Register, the DOL is seeking input on the role the “duties test” plays with respect to the salary threshold, what is the proper methodology, and whether there should be multiple salary levels to reflect different regional economies, sizes of employers, and exemptions.

The National League of Cities plans to issue comments on the RFI, which are due on September 25.  If you are interested in sharing the impact of this rule on your city (e.g., the cost implications on your municipal payroll both in the first year of implementation and beyond; any changes you have made to the number of exempt employees on your payroll; and any thoughts you may have on the duties test applied to determine the status of employees), please submit comments (Instructions can be found in the RFI linked above).

*The article above was reprinted from the National League of Cities.

TML member cities may use the material herein for any purpose. No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the Texas Municipal League. 

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