Federal Court Grants Injunction Blocking FLSA Overtime Rule

clock - overtime rules

Late Tuesday afternoon, a federal district court judge in Texas granted a preliminary injunction to a number of plaintiffs who sued the United States Department of Labor, challenging the new overtime rules that were expected to take effect next Thursday, December 1.

The highly publicized rule would increase the salary threshold required for determining whether or not an individual is exempt from the Fair Labor Standards Act’s overtime rules. The new rule was applauded by the Obama administration and and workers’ rights groups, who cheered the fact that millions of workers would now be entitled to overtime compensation. The rules likewise was opposed by many business owners for the same reasons.

A number of states and private plaintiffs sued, claiming that the Department of Labor either had no authority to make salary a part of the exemption test or at least that the DOL exceeded whatever authority it did have. The court consolidated a number of the cases and recently considered a request to grant a preliminary injunction that would halt or delay the new rules until the court could consider the full merits of the case. The Court today granted the preliminary injunction, noting that delaying the implementation of the new rule while the case is pending would be wise, since it will be less disruptive than allowing the rule to go into effect and then potentially invalidating it after the fact.

The temporary delay places in jeopardy the final implementation of the rule, as it is expected that the final decision on the merits will not come until after January 20, 2017, when Donald Trump is sworn in as President. Some observers anticipate that President Trump and his new Labor Secretary will not defend the Obama Administration’s rule, allowing the overtime expansion to be invalidated.

We will continue to monitor this matter, but for now, it remains to be seen when, if or how these new overtime rules actually will take effect.

Opt In Image
Join Our Email List
For Periodic News & Updates

Subscribe to FW: the Fanelli Willett e-Newsletter, to get legal news and updates just like this one, along with news about the firm and its clients, sent directly to your inbox.  Sign up today!

Legal updates are intended to provide general information They do not constitute legal advice nor do they create an attorney-client relationship. Therefore, we strongly recommend that you obtain legal advice from a licensed attorney who can adequately assess your unique situation. The information on this site and in our newsletter is not, nor is it intended to be, legal advice.

Leave a Reply