July Employment Law Bulletin

July 31, 2017   Written by:   Filed under: Breaking News

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DOL’s Salary Exemption Gamble

The Obama administration’s Department of Labor initiative to increase the salary level of certain exempt employees to $47,000 was enjoined on November 22, 2016, by Judge Amos Mazzant of the United States District Court for the Eastern District of Texas in the case of State of Nevada v. United States Department of Labor. That case is pending before the Fifth Circuit Court of Appeals. Judge Mazzant stated that DOL put too much emphasis on salaries rather than job duties for exempt employees and overall questioned whether the Department of Labor can increase the salary threshold at all. On June 30, the Trump administration Department of Labor made an unusual and risky request to the Fifth Circuit: “The Department requests that this Court not address the validity of the specific salary level set by the 2016 Final Rule ($913 per week) which the Department intends to revisit through new rule making.”

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