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ARTICLE · 03 OCTOBER 2017

Employment, Labor & Benefits Update - September 2017

Masuda, Funai, Eifert & Mitchell, Ltd.
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On August 31, 2017, a federal district court in Texas officially struck down the overtime rule issued by the Obama administration, which would have substantially increased the salary threshold...

United StatesEmployment and HR
Masuda, Funai, Eifert & Mitchell, Ltd.
Masuda, Funai, Eifert & Mitchell, Ltd.
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Federal Judge Nullifies Obama Administration's Overtime Rule

By Masanari Katsumi  

On August 31, 2017, a federal district court in Texas officially struck down the overtime rule issued by the Obama administration, which would have substantially increased the salary threshold for millions of employees to be exempt from receiving overtime pay under the Fair Labor Standards Act ("FLSA"). According to the FLSA, employees are not entitled to overtime, if they earn a certain minimum salary and perform certain duties to be considered an executive, administrative or professional employee. The rule would have increased the salary threshold for employees to $47,476 annually, more than double the current salary level of $23,660. Companies would have had to pay overtime pay to approximately 4 million additional employees who earn less than the new salary threshold. The rule was going to take effect on December 1, 2016, but the same federal district court, on November 22,

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