overtime law ruling

Texas Judge Preliminarily Enjoins New Overtime Exemption Rules Nationwide: What Steps Should Follow?

By: Seyfarth’s Wage & Hour Litigation Practice Group

**UPDATE 12/2/16: On December  1 (the day on which the new salary level was supposed to become effective) the Department of Justice and Department of Labor filed a notice of appeal from the district court’s order granting a preliminary injunction.  The notice was filed around the same time that a number of members of Congress held a media event in support of the increased salary level. According to Seyfarth Shaw LLP, at this time, it does not appear that the government has sought a stay of the preliminary injunction. Subscribe for continued updates**

Late Tuesday afternoon, Judge Amos Mazzant of the United States District Court for the Eastern District of Texas issued an order enjoining the U.S. Department of Labor’s implementation and enforcement of the new overtime exemption rules that were set to go into effect on December 1, 2016.  The court granted a motion for preliminary injunction filed by the attorneys general of 22 states, in which the states argued among other things that the new rules were unlawfully promulgated and would be likely to cause irreparable harm to the states that requested the injunction.  The court also considered amicus arguments made by various chambers of commerce and trade associations, which filed a companion case asserting similar and separate grounds for overturning the DOL’s new rules.  Although the court’s order leaves some room for confusion on this point, it appears to apply to all public and private sector employers nationwide.

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