Just 10 days before the December 1, 2016 effective date, a Federal Judge in Texas delayed implementation of the new Department of Labor’s federal overtime rule.
Twenty-one states filed an emergency motion for a preliminary injunction in October to halt the rule, claiming that the DOL exceeded its authority by doubling the salary threshold and by providing automatic adjustments every three years.
The states’ case was consolidated with another lawsuit filed by the U.S. Chamber of Commerce and other business groups.
The preliminary injunction “preserves the status quo while the court determines the department’s authority to make the final rule as well as the final rule’s validity,” said Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas in the ruling.
For now, the new overtime rule will not take effect as planned on December 1, 2016 but still could be implemented down the road. However, the rule could face an uphill battle. Judge Mazzant opined that “the State Plaintiffs have shown a likelihood of success on the merits because the Final Rule exceed the Department’s authority.”
The Republican Congress and President-elect Trump also oppose the rule, further putting it in serious jeopardy.
Setliff Law will continue to update you on this historic rule.
Have a safe and wonderful Thanksgiving Holiday!