Labor Update: New Overtime Rule and EEO-1 Form Blocked

Date: September 13, 2017

Related Content: Legal - Compliance Labor

New Overtime Rule Invalidated

A federal judge in Texas issued an order on August 31, 2017, invalidating the Obama Administration’s new Overtime Rule that had been issued by the United States Department of Labor (DOL) in May 2016. The NFIB Small Business Legal Center led the court fight to block the new rule.

Under the new overtime rule, salaried workers making below $47,476 would have been entitled to overtime. That new figure would have nearly doubled the previous threshold of $23,660, potentially making more than 5 million employees suddenly eligible for overtime.

What the Court Ruled

NFIB argued in its lawsuit that DOL stepped far beyond its statutory authority when it made millions more employees potentially eligible for mandatory overtime. The U.S. District Court agreed with NFIB’s arguments; the court found that by raising the minimum salary threshold for most overtime-exempt employees to $47,476, DOL made an employee’s job duties irrelevant and that action contravened Congress’ intent when it enacted the Fair labor Standards Act.

What Employers Need to Know

Until further action, the minimum salary threshold for the white-collar exemptions will remain at $455 a week, or $23,660 per year, where it has been since 2004. The salary threshold for the highly compensated employee exemption will remain at $100,000 per year.

While the Trump Administration, under DOL Secretary Alexander Acosta, has indicated it will undertake its own review of the overtime rule, it’s unlikely that DOL would issue any new proposed rule before the end of the year.

Employers with questions can contact the NFIB Small Business Legal Center directly at (800) NFIB-NOW.

EEO-1 Pay Data Obligations Stayed

The White House’s Office of Management and Budget has indefinitely postponed the addition of pay data and hours worked information on the revised EEO-1 Report. NFIB had strongly opposed this additional reporting requirement.

What Employers Need to Know

The next EEO-1 report will be due in March, 2018 with employee race, ethnicity and gender information. Employers should use the previous version of the EEO-1 form.

Note: There is NO EEO-1 reporting requirement for 2017.

• The EEO-1 form is to be submitted by all employers with 100 or more employees.

• Federal government contractors are required to submit a form with 50 or more employees.

For additional information, visit the EEOC’s FAQ at: https://www.eeoc.gov/employers/eeo1survey/faq.cfm or call the NFIB Small Business Legal Center at (800) NFIB-NOW.

Updated September 13, 2017

Related Content: Legal - Compliance | Labor

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