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What’s going on with the new overtime rule?

Updated on June 21, 2017: On June 7, 2017, in testimony before the Appropriations Committee of the U.S. House of Representatives, Labor Secretary Alexander Acosta announced that the DOL would submit a request for information (RFI) on the new overtime rule in about 2 or 3 weeks. An RFI is usually one of the first steps in changing or developing a new rule. At his confirmation hearing, Secretary Acosta suggested that a new trigger point of $33,000 would be reasonable.

In 2016, the Obama administration issued a new overtime rule. The rule was set to take effect on December 1, 2016. But in November 2016, a Federal district judge enjoined the enforcement of the rule. In December, the U.S. Department of Labor (DOL) appealed the district judge’s injunction to the U.S. Fifth Circuit Court of Appeals.

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U.S. House of Representative passes comp time bill

On May 2, 2017, the U.S. House of Representatives passed a bill that would allow employees to be compensated for overtime with compensatory time, more often referred to as “comp time.” The bill was introduced by Representative Martha Roby, a Republican who represents Alabama’s second Congressional district. The second Congressional district is composed of Montgomery County and most of southeast Alabama.

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Employers must begin using new I-9 Form

As of January 22, 2017, employers must use the new I-9 Form when onboarding new employees.

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Update on appeal of injunction against new overtime rules

On December 1, 2016, the U.S. Department of Labor (DOL) filed a notice of appeal in Nevada v. U.S. Department of Labor. The appeal comes as a result of a U.S. District Court in Texas issuing a nationwide injunction against the DOL’s new overtime rules that were to go into effect on December 1. The appeal was filed in the U.S. Fifth Circuit Court of Appeals (docket number 16-41606).

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U.S. District Court in Texas enjoins enforcement of new overtime rules

Update to this post:  On December 1, 2016, the U.S. Department of Labor filed a notice of appeal in this case.  We will now have to "stay tuned" for a decision by the U.S. Fifth Circuit Court of Appeals.

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