LANSING – Another blow was landed against the Obama administration’s effort to change US wage and hour law without passing an amendment to the almost 80-year old Fair Labor Standards Act. The same Texas federal court that originally temporarily stayed the implementation of a new salary level test rule issued a permanent injunction against those rules last week.

The Court’s reason for the permanent injunction remained the same: the salary level set by the new regulations was too high and changed the FLSA’s intent pursuant to the original exemptions.

For most jobs exempt status is determined by passing three tests set by Department of Labor (DOL) regulation. These tests are: 1. salary basis test; 2. salary level test; and 3. job duties test. There are several classifications of jobs that are “exempt” from the record keeping and overtime pay requirements of the FLSA. The main classifications are: Executive; Administrative, Professional, Outside Sales, and a relatively new classification called Computer Professional. This Court’s ruling impacts the Executive, Professional and Administrative exempt classifications.

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