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Implementation of DOL Overtime Regulation Delayed

On November 23, 2016, a federal judge granted an emergency preliminary injunction to delay implementation of the U.S. Department of Labor’s overtime regulation set to take effect on December 1st. The finalized regulations establish a new minimum salary threshold of $47,476 per year, for certain employees. This constitutes a 100% increase in the salary threshold for overtime eligibility and the accelerated implementation of the requirement exceeds the fiscal capacity of many of the nation’s school districts. The judge noted, “[d]ue to the approaching effective date of the Final Rule, the Court’s ability to render a meaningful decision on the merits is in jeopardy.” The injunction will remain in place while the “Court determines the department’s authority to make the Final Rule as well as the Final Rule’s validity.”

Republicans in both the House of Representatives and the Senate have been working on plans to overturn the regulation under the Congressional Review Act, even considering adjustments to the legislative calendar to preserve the ability to take action on the regulation. The National School Boards Association submtted a letter to Senator Lamar Alexander, Chairman of the Senate Health, Education, Labor and Pensions Committee, and Rep. Kurt Schrader, both of whom have filed bills to delay implementation of the rule, urging immediate legislative action to delay implementation of the rule and provide relief to school districts by establishing a multi-year “phase in” of the salary increases. Federal Advocacy staff will continue to keep you updated on developments