Removing Barriers Blog

DOL Signals Potential Changes to Overtime Rule
Posted June 12,2017 by vgawali

This week Secretary Alexander Acosta stated that the Department of Labor (DOL) will issue a Request for Information (RFI) in the next few weeks seeking input on its new Overtime rule. The rule increased the threshold for overtime pay eligibility by approximately double the previous rate, from $23,600 annually to $47,476 annually. There is currently litigation, which has halted the overtime rule from going into effect. 

In late November, a federal district court in Texas granted an emergency preliminary injunction stopping the DOL from enforcing its rule for overtime pay, which was set to go into effect on December 1. The DOL requested an extension for filing its brief in the litigation and has until June 30 to do so.  

There has been speculation that with this upcoming court deadline and the decision to issue an RFI, the DOL may withdraw its appeal of the lawsuit and consider changes to the rule. If the DOL withdrew its appeal, this would leave the current nationwide injunction of the rule in place. During a Wednesday hearing in the House Budget Committee Secretary Acosta suggested that he think the current threshold is too low.  

As Congress and the DOL continue to consider this rule, CUNA will stay engaged with advocating credit union concerns.