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Labor Dept. resurrects overtime rule, appeals judicial defeat

Joe Mont | October 31, 2017

The Department of Labor has announced plans to appeal a court ruling that invalidated previous rulemaking during the Obama Administration that established thresholds for mandatory overtime pay. Efforts to craft a revised rule remain underway, it says.

The 2016 rule modified the Fair Labor Standards Act and its application to white-collar workers. Previously, only employees with an annual salary of more than $23,660 who performed certain duties could be required to work more than 40 hours a week without being compensated with overtime. The rule reset that threshold to $47,476 a year and expanded the definition of “salary basis” to allow non-discretionary bonuses and incentive payments, including commissions, to satisfy up to 10 percent of the standard salary test requirement.

The final rule also established an automatic updating mechanism that adjusts the minimum salary level every three years. The...

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