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Recent ruling invalidates DOL OT change; comments sought

A federal judge in Texas ruled on Aug. 31 that the Overtime Final Rule issued by the previous Administration is invalid because the U.S. Department of Labor exceeded its authority by doubling salary-level test to $913/week (from $455/week) that would have reclassified as many as four million workers, making them eligible to earn overtime, according to the National Council of Nonprofits. The change, proposed last year, would have eliminated the exempt status to executive, administrative and professional employees without regard to their job duties.

This decision from the court was expected and was sought by the current Administration’s Labor Department. The ruling does leave room for DOL to set a salary threshold at some level.

The Labor Department published a Request for Information in July seeking input on how to adjust the salary-level for inflation and what changes, if any, to the duties test are appropriate. Nonprofits are encouraged to submit comments to DOL to make sure your voices are heard. The public comments period closes on Sept. 25.

Click here to submit your comments.