In Nevada v. U.S. Dep’t. of Labor, ____F.
Supp. 2d____(E.D. Tx. Aug. 31, 2017), the court declared President Obama's Over Time Rule, 81 Fed Reg. 32, 391 invalid.
The Court found that the exemptions for executive, administrative
and professionals set forth in 29 U.S.C. 213(a)(1) were meant by Congress to be defined by the duties that the employees performed. The Department of Labor has long had a Salary Basis test which required that employees earn a certain salary in order to be exempt. The Final Rule more than doubled the previous
minimum salary level, increasing it from $455 per week ($23,660 annually) to
$913 per week ($47,476 annually) and the court found that this would make the
employees duties irrelevant if it fell below the minimum level. Interestingly,
the court found that the prior salary test ($ 455 per week), was consistent
with Congressional intent because the Department used that level of salary to
identify a category of employees Congress intended to exempt.
It would appear no salary basis test is currently in place in the Eastern District of Texas.
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