At Christianson, we do everything we can to keep our individual and business clients in the know when it comes to legislative changes and updates. On August 31, 2017, the final ruling related to the new Department of Labor (DOL) overtime rule was issued which officially struck down the Obama-era rule.
U.S. District Judge Amos Mazzant is saying that the Department of Labor (DOL) set excessively high salary thresholds which were proposed to go from $23,660 to $47,476 annually. Twenty-one states and many business organizations also argued that the salary limit and three year raises were not the intent of Congress.
It doesn’t look like the Trump administration will appeal this ruling but may decide on a middle ground salary in the future. Some employers have already made changes to raise salaries or convert to hourly to be in compliance with this proposed regulation. If the ruling stands then the proposed DOL overtime rules will no longer apply and employers can look at the previous rule for compliance.
If you have questions regarding this, or other payroll questions, please contact us today. We would be happy to help!