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Everything HR professionals need to know about the FLSA overtime exemption rule
A federal judge in Texas on Aug. 31 struck down an Obama-era federal overtime rule which would have made more than 4 million currently exempt employees eligible for overtime pay.
U.S. District Judge Amos Mazzant granted summary judgment to more than 55 business groups that had challenged the Obama administration's 2016 rule that more than doubled—from $23,660 to $47,476—the minimum annual salary required to qualify for the Fair Labor Standards Act's "white collar" exemption. The same court last November blocked the overtime rule from taking effect, but had not declared it invalid.
The Fair Labor Standards Act (FLSA) overtime rule determines whether employees are eligible or exempt for overtime pay. Exempt employees, because of their rate of pay and type of work that they do, are not eligible for overtime pay for hours worked over 40 in a workweek. Nonexempt employees must be paid time and a half for any hours worked more than 40 in a workweek.
Backers of the overtime rule will likely try to appeal the ruling at the appellate court level.
Meanwhile, the U.S. Department of Labor may issue a new proposed rule with a smaller salary threshold increase.
What Were The Proposed FLSA Overtime Rule Changes?
FLSA Overtime Rule Coverage:
Federal Judge Strikes Down Obama DOL's Overtime Rule
SHRM Member Resources:
SHRM members receive exclusive access to templates, tools, webcasts, how-to guides and more aimed at helping HR professionals get their organizations into compliance with the new overtime regulations. Anyone who is involved in HR, supervises the HR function or otherwise has an interest in HR is
invited to join.
What Is SHRM's Stance On The Changes?
SHRM'S Action On Changes To The FLSA Overtime Rule Exemptions:
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