Even though a federal judge blocked new overtime rules for salaried employees that would have gone into effect late last year, the issue is apparently still alive.
Labor Secretary Alexander Acosta told a meeting of the American Bar Association in November that while the Obama-era planned rule change created a “shock to the system,” he did believe that the current salary threshold of $23,660 needed to be revisited.
Under rules proposed by the Obama administration, employers would have been required to pay as of Dec. 1, 2016, overtime to all employees earning $921 a week or $47,892 a year, nearly doubling the current threshold.
A month before the rules were to take effect, however, a federal judge in Texas issued an injunction, blocking the rules. So, for now, the 2004 threshold of $23,660 remains.
Even though the labor secretary has said he is in favor of raising that limit, he also said he will follow the rule of law, which will require a new notice and rulemaking process that involves a comment period, review and an economic analysis.
We will be sure to keep you posted as new information develops and help you plan in the event of any changes that may occur.