SimplyHR | Employment & Labor Blog 

The theme for last year’s federal developments was reversal of Obama-era rules. The Department of Labor and National Labor Relations Board were especially active in this respect.

After a relatively quiet Supreme Court term for employment law in 2018-19, the stage is set for the court to rule in 2020 on highly anticipated topics. Below is a summary of major federal employment law headlines from last year and a look at what employers can expect in 2020.

With the new year fast approaching, millions around the world will be gathering to count down the end of 2019 and usher in a new decade. As the ball drops in Times Square, employers should be asking themselves, “Are my exempt employees still subject to the Fair Labor Standards Act (FLSA) exemption?”

The Department of Labor (DOL) announced its Final Rule updating the exemption threshold under the Fair Labor Standards Act (FLSA) on Sept. 24, 2019. The Final Rule raises the standard salary level threshold for “white collar” employees from the $23,660 minimum established in 2004 to $35,568, or $684 per week. Employees earning less than $35,568 a year must be paid overtime for hours worked in excess of 40 each week. Above this salary level, eligibility for overtime varies based on job duties.

The Department of Labor (DOL) issued its long-awaited proposed overtime rule and new exemption threshold under the Fair Labor Standards Act (FLSA) on March 7, 2019. The regulation, which replaces the controversial rule issued under the Obama administration in 2016, raises the salary threshold from the $23,660 minimum established in 2004 to $35,308, or $679 per week. As such, employees earning under $35,308 a year must be paid overtime for hours worked in excess of 40 each week. Above this salary level, eligibility for overtime varies based on job duties.

On April 2, 2018, the U.S. Supreme Court, in a close 5-4 decision, held that car dealership service advisors are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). In reaching this conclusion, the court rejected the long-held belief that FLSA exemptions should be applied narrowly.

A Texas district court judge struck down the Obama administration’s overtime rule on Aug. 31, 2017, finding that the Department of Labor (DOL) had exceeded its authority in adopting a new salary threshold that would have entitled an estimated 4.2 million workers to overtime compensation.

The U.S. Department of Labor (DOL) published a request for information (RFI) in late July seeking comments, data, ideas and information on an appropriate salary level for exempt employees under the Fair Labor Standards Act (FLSA).

This month, the House of Representatives passed by a vote of 229-197 the Republican-backed overtime bill titled the Working Families Flexibility Act. The act would enable employees to choose taking “comp time” or paid time off work instead of receiving overtime pay when they work more than 40 hours in a week. Proponents of the bill say this will provide increased flexibility for workers who want to spend more time with their families, but critics believe it will weaken federal overtime protections and make it easier for employers to delay paying earned overtime wages.

Last week, 60 business groups and four states joined the fight against the Department of Labor’s new overtime rule by filing amicus briefs in the Fifth Circuit asking the court to uphold the district court’s injunction blocking the rule from taking effect.

2016 was a busy year for employment law developments on a national level, and 2017 promises to follow suit. To help employers navigate the changes, here is a summary of major developments that may affect your business this year.