National Roofing Legal Resource Center

Judge strikes down Obama administration overtime rule

The Department of Labor (DOL) has asked a federal appeals court to dismiss its appeal of a court order blocking the controversial "overtime rule" promulgated by the Obama administration. This immediately followed a federal judge in Texas striking down the regulation last week, saying it violates the intent of Congress under the Fair Labor Standards Act (FSLA) because it includes salary as a qualification for employees to be paid overtime. DOL had only recently published a request for information from employers and stakeholders regarding overtime exemptions under the FLSA in preparation for drafting a new rule. Secretary of Labor Alex Acosta had indicated an update to the 2004 rule could be warranted, but he believes the $47,476-per-year threshold the Obama administration's rule called for is too high. Acosta has speculated an inflation-adjusted threshold would be about $33,000 per year, but it remains to be seen how DOL will update or implement a new rule. For now, businesses can continue to use the duties test to determine eligibility for overtime. NRCA will continue working with other business stakeholders on comments ensuring our members' voices are heard on this issue.


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