The U.S. Department of Labor’s (DOL’s) decades-long practice of setting salary thresholds for white-collar exemptions was upheld on Sept. 11 by the 5th U.S. Circuit Court of Appeals, which in a unanimous panel opinion avoided a federal circuit court split on the issue. The DOL’s recent increases to the salary threshold may still be vulnerable to legal challenges, however. We’ve gathered articles on the news from SHRM and other outlets.
For years, the DOL has defined the so-called white-collar exemption in the Fair Labor Standards Act (FLSA) to include a minimum-salary requirement. The plaintiff challenged the overtime rule as updated by the Trump administration, asserting that any rule imposing a salary requirement exceeded the department’s authority. The 5th Circuit ruled that the 2019 minimum-salary rule, which took effect in 2020, was within the department’s authority to define the terms of the exemption and that this power was not an unconstitutional delegation of legislative power.
The 5th Circuit noted that it was joining four other federal appeals courts in holding that the DOL has the statutory authority to issue the minimum salary rule.
Under the FLSA’s white-collar exemption, executive, administrative, and professional employees can be exempt from overtime pay eligibility if they’re salaried, make more than a certain amount per year, and have certain job duties. The 2019 rule had...
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