FLSA White Collar Exemptions Update: U.S. Department of Labor (DOL) Issues a Request for Information and the DOL files Reply Brief in Pending Litigation
Author: Jody Rodney/Wednesday, July 5, 2017/Categories: Compliance Corner
As expected, on June 27, 2017, the DOL has sent the Office of Management and Budget a request for information (RFI) on the DOL’s final overtime rule updating the FLSA’s white collar exemptions, issued May 23, 2016 (which would have nearly doubled the salary threshold that a worker would have to meet in order to be properly classified as exempt), indicating that whether DOL defends the rule in court or not, the DOL plans to modify it.
In addition, the DOL has filed a Reply brief in the pending litigation that stalled implementation of the DOL’s final overtime rule. In short:
· The DOL is defending its ability to set a salary level; and
· The DOL is asking the court to not address whether the $913 threshold is lawful.
· Assuming the Court of Appeals follows the path above then this leaves open the possibility that the $913 level could be reinstated by the lower court (though that seems highly unlikely) or the lower court could rule that the $913 level was arbitrary and capricious (e.g. the authority to set the level exists but, because of the way in which it was determined, it remains blocked).
· DOL through the Office of Management and Budget will publish a Request for Information shortly which will seek public comment on a new overtime rule (so we know there will more than likely be a new lower salary threshold). Publication of the RFI simply starts the formal rule making process (typically a lengthy process) for a new OT rule.
· No Action is required by clients at this time (the $913 level remains blocked at this time).
ADP will continue to monitor developments around the FLSA’s White Collar exemptions.
As always, please reach out to your Relationship Manager or Service Team with any questions.