On August 31, 2017, the federal judge permanently blocked the Final Rule. The judge concluded that the Department of Labor (DOL) exceeded its authority by raising the minimum salary so significantly that it became the determinative test for exempt status, diminishing the importance of the duties test. The latest ruling means that the minimum exempt salary requirement remains at $455 per week under federal law. The ruling also closes one of the avenues by which the 2016 Final Rule could take effect in the future. However, employers should continue to watch for any further developments in the case. View previous updates
- On June 30, 2017, the DOL submitted a reply brief asking the court to only address the question of whether the DOL has the authority to set a new salary level without ruling specifically on whether the blocked $913-per-week requirement itself was valid. Instead, the DOL intends to follow the rulemaking process to determine a new salary level going forward if the court affirms its authority to do so. As of now, the overtime rule remains blocked, but it is still possible for the rule to go into effect in the future.
- On December 1, 2016, the DOL filed a notice of appeal with the federal court.
- On November 22, 2016, a federal judge blocked the DOL from implementing and enforcing the final rule and related changes discussed below. The rule has been delayed and will not go into effect on December 1, 2016 as expected.
- We will continue to monitor the case closely and update this page as developments unfold.