With Labor Day just past, it seems appropriate that we learn news of DOL’s ever controversial proposed changes to the Fair Labor Standards Act (FLSA). A federal judge in Texas struck down the overtime rule which has been on hold since November of last year. As employers everywhere clandestinely rejoice, it’s not for lack of compassion for their employees. At the crux of the controversy was the minimum annual salary threshold and this sent employers into a tailspin around this time last year.
After a few short days following the ruling, The Department of Labor just announced it will drop it’s appeal and accept the decision. Still, all indications point to a revised update to FLSA that many employers and industry associations will find far more reasonable. The need for the threshold to increase is important. Organizations such as IPMA-HR, CUPA-HR, and SHRM have all responded in support of overtime reform, but stopped short of getting behind a salary threshold increase of more than double.
A new Request for Information (RFI) has been issued by the Dept of Labor asking for input from employers and the community hopefully signaling a more agreeable change to a law that hasn’t been updated since 2004 for “white-collar” workers. The overturned rule is not an end to the discussion, but rather an opportunity for improvement.