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Brad Close National Federation of Independent Business | Official Website

NFIB seeks court review on DOL overtime rule affecting small businesses

The National Federation of Independent Business (NFIB) has filed an amicus brief urging the United States Court of Appeals for the Fifth Circuit to reconsider a panel decision in the case Robert Mayfield v. U.S. Department of Labor. The decision in question pertains to the Fair Labor Standards Act (FLSA) and its exemption from overtime pay requirements for employees classified as "executive, administrative, or professional" (EAP exemption). The case raises concerns about whether the Department of Labor has the authority to impose a salary threshold test to determine if an employee qualifies for this exemption.

Beth Milito, Executive Director of NFIB’s Small Business Legal Center, stated, “DOL’s imposition of a salary threshold test for the EAP exemption and its continued increases of that salary threshold are a significant burden on small businesses.” She further emphasized that “Congress did not give the Department of Labor clear and direct authority to impose a salary threshold for the EAP exemption. NFIB urges the full Court to consider small businesses and review the panel’s decision.”

The amicus brief submitted by NFIB highlights two primary arguments: first, that the panel's decision introduces uncertainty within the Fifth Circuit regarding the Department's ability to adjust the salary threshold; second, that FLSA exemptions are crucial to fulfilling the statute's purpose and should not be limited.

The NFIB Small Business Legal Center is dedicated to defending small business owners' rights in courts nationwide. Currently, NFIB is involved in over 40 cases across federal and state courts as well as in the U.S. Supreme Court.