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Department of Labor will not Defend Overtime Rule

On November 22, 2016 a federal court temporarily blocked the proposed overtime rule that would have raised the salary threshold for exempt employees. Under these new rules, the overtime exemption for salary would have risen significantly from $23,660 to potentially as high as $50,440. Click here to read our previous blog about the proposed rule.

Now the Department of Labor (DOL) has decided it will not defend the overtime law that many claimed was too drastic for many employers to cope with.

Instead, the DOL has submitted a Request for Information. An RFI is an optional step that government agencies can take to gain public input as to whether a new law or a change in a law is necessary.  The DOL will likely begin a new lawmaking process and draft a new overtime law with a lower salary threshold.