Thursday’s summary judgment “likely sounds the death knell for the Obama-era overtime rule,” says the latest analysis by attorneys for Jackson Lewis, NJBIA’s HR legal hotline provider. The ruling will likely make two pending legal actions moot, and while proponents still have legal avenues they can pursue, an appeal seems unlikely.
“Where does that leave the white collar exemptions?” the article states. “Back where they were prior to May 2016 — and since 2004 — at least until the Trump Administration promulgates a new rule with a revised minimum salary level, something Secretary of Labor Alexander Acosta has intimated will happen.”
The Department of Labor’s May 2016 Final Rule would have more than doubled the minimum salary necessary to satisfy the “executive, administrative or professional” (the “EAP” or “white collar”) overtime exemptions under the Fair Labor Standards Act. It would have impacted 4.2 million employees, including an estimated 132,000 in New Jersey.
Businesses still have to apply the three-part test to determine who can be considered exempt from the regulations. NJBIA has updated its Fast Facts compliance brief on overtime regulations. Fast Facts are free for NJBIA members, but a password is required.