After having two initiatives from the Obama Administration hanging over employers’ heads for the past two years, both the white-collar overtime exemption minimum salary requirement increase and the EEO-1 Report demographic salary information initiatives are officially dead!
The white-collar exemption minimum salary requirement increase initiative was “killed” on Thursday, August 30, by a federal judge in Texas. The judge granted the motion for summary judgment which had been filed in a lawsuit brought by more than 55 business groups challenging the Obama Administration’s attempt to more than double the annual minimum salary required for the Fair Labor Standards Act (FLSA) white-collar overtime exemptions from $23,660 to $47,476. God Bless Texas!
This followed the Office of Management and Budget’s (OMB) announcement on Wednesday, August 29, that it is withdrawing the rule which was slated to go into effect as of March of 2018, which would have required all employers who submit annual EEO-1 Reports to include demographic salary information as part of these reports. The Trump Administration had asked the OMB to “re-examine” the rule. In withdrawing it, the OMB explained that “the rule lacks practical utility, [is] unnecessarily burdensome, and do[es] not adequately address privacy and confidentiality issues.”
So, a reprieve has been granted to employers in both areas, as up until this week, both these issues remained unsettled, and the EEO-1 Report demographic salary information requirement was still slated to go into effect in March.
In celebration, why don’t we all take Monday off?
As always, should you have any questions concerning either of these developments or other Labor & Employment Law topics, please contact Stacie Caraway or any other member of our Labor & Employment Law Practice Group.
Happy Labor Day!
