NewsOvertime Pay Exemption Lowered For Salaried Workers

Overtime Pay Exemption Lowered For Salaried Workers

Trump era EPA exemption reinstated by federal court limiting overtime pay for salaried workers.

On Nov. 15, according to Bloomberg Law, the Department of Labor (DOL) suffered a hit to its new guidelines for overtime pay.

The United States District Court Eastern District of Texas ruled that executive, administrative, and professional (EAP) salaried employees earning above $35,568 will no longer receive federal minimum wage for overtime work. 

The amount was rolled back from the current Biden administration threshold of $43,888. 

In his ruling, Judge Sean Jordan of the Eastern District of Texas stated that the administration overreached its authority when modifying the rule. 

Judge Jordan states that a change in the wage for a salaried exemption does not meet the requirements without adding or modifying the duties of employees. 
The ruling “essentially ma[de] an employee’s duties, functions, or tasks irrelevant if the employee’s salary f[ell] below the new minimum salary level,” and unlawfully “ma[de] salary rather than an employee’s duties, the determinative factor for the EAP Exemption,“ Jordan said. 

RELATED CONTENT: Trial Date Set For Baltimore Officer Accused Of Overtime Fraud

Source: Black Enterprise

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