Although the Department of Labor (DOL) is not a governing body, it is a government agency that has been charged with protecting American workers from employers who might try to take advantage of them. Because it is not part of the legislative branch of government, the DOL cannot make laws, but it can make rules. But a question that often arises is whether those rules are enforceable.
The specific rule in question this time is one in which the DOL raised the minimum salary a worker must be paid before they can qualify for the overtime exemption under the federal Fair Labor Standards Act (FLSA). The FLSA put the salary limit at $23,660 per year, but that was more than ten years ago, and under the Obama administration, the DOL more than doubled it to $47,476 per year.
The new rule faced massive opposition from 21 states and numerous business groups, including the U.S. Chamber of Commerce, which filed a lawsuit against the DOL, claiming the department did not have the authority to either create or enforce such rules. The rule was supposed to go into effect on December 1, 2016, but the week before, a federal judge filed an injunction against the rule.
The injunction was meant to be a temporary measure by which the court could gain more time to consider the dispute. But since the court still has not reached a final decision on the matter, what are employers supposed to do in the meantime? Continue reading