Overtime Rule Struck Down by Texas Federal Court

Wednesday, September 13, 2017
A federal judge in Texas struck down the 2016 change to the federal Fair Labor Standards Act that was intended to substantially raise the minimum salary threshold required for employees to qualify for the white collar exemptions. The changes were suppose to take effect December 1, 2016, but on November 22, 2016, District Court Judge Mazzant granted a preliminary injunction blocking these changes.

The Texas judge found that "the Department does not have the authority to use a salary-level test that will effectively eliminate the duties test." He ruled "this is not what Congress intended." Judge Mazzant concluded: "The Department has exceeded its authority and gone too far with the Final Rule." He also noted that the automatic updating mechanism that intended to adjust the minimum salary level every three years was unlawful and struck that as well.  The Court made the ruling on August 31, 2017.
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