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Proposed Overtime Rule May Be Dead

Last week, a federal judge ruled that the Department of Labor’s proposed Overtime Rule was invalid, signaling that the proposed Rule may now be dead. The proposed Overtime Rule would have dramatically expanded the number of executive, administrative and professional employees that would have been eligible for overtime pay. The proposed Rule would have doubled the “minimum salary level” exemption for such employees under the Fair Labor Standards Act’s overtime rules. The Overtime Rule was originally set to be effective December 1, 2016, but was put on hold by a federal court. In the August 31, 2017 ruling, a federal judge determined that the U. S. Department of Labor lacked the authority to issue the proposed Overtime Rule, and due to that lack of authority, the Rule itself was unlawful. It is uncertain, at this point, what steps the administration will take going forward, but, for the time being, this proposed Overtime Rule, seems to be off the table.