Judgment Entered: DOL Went Too Far with Increase to Minimum Salary Threshold

I am frequently asked about the status of the updated minimum salary levels of last year that were enjoined from going into effect as scheduled last December 1.  There were two cases pending in Texas before U.S. District Court Judge Amos Mazzant.  Late last year Judge Mazzant enjoined the new rule from taking effect.  That decision has been on appeal before the U.S. Court of Appeals for the Fifth Circuit. 

Now, hot off the press:  Judge Mazzant just granted summary judgment in favor of business groups that brought one of the two cases. This means that the business groups won their challenge.  Per Judge Mazzant, the bottom line is that the Department of Labor went too far with its increase (to just over $47,000), nullifying the duties aspect of the long-standing overtime eligibility test.

Judge Mazzant explained, “The department creates a final rule that makes overtime status depend predominately on a minimum salary level, thereby supplanting an analysis of an employee’s job duties. Because the final rule would exclude so many employees who perform exempt duties, the department fails to carry out Congress’s unambiguous intent.”

Expect an appeal of this entry of summary judgment.  However, the next real moves on the game board will be from the Fifth Circuit (addressing the injunction from last year) and the DOL (that has issued questions for public comment and has signaled a more modest proposed increase to the minimum salary threshold).