Update On Overtime Rules - DOL Appeals Nationwide Preliminary Injunction

Volume 15, Issue 27
December 9, 2016

Department of Labor As we reported on November 22, 2016, a Texas federal court has temporarily stopped the Department of Labor (DOL) from implementing its new overtime rule that significantly raised the minimum salary requirement necessary to exempt from overtime many white-collar employees (specifically executive, administrative, professional, outside sales, and computer employees). The new rule was to go into effect on December 1, 2016, but has been stayed by a federal court in the Eastern District of Texas pursuant to two lawsuits filed by a group of 21 states (including Nevada) and the U.S. Chamber of Commerce.

The DOL has stated that it "strongly disagrees with the decision by the court." On December 1, 2016 the DOL appealed the Texas court's ruling to the U.S. Circuit Court of Appeals for the Fifth Circuit. The DOL then immediately asked the appeals court to consider this issue in an expedited fashion. Even if the court were to grant the DOL's request for expedited consideration, the appeal will not likely be decided until after President-Elect Trump is sworn in. As such, it is possible that the Trump Administration could take action on this matter before the appeals court rules.

We will continue to keep you posted on this developing issue. If you have questions about what to do regarding the revised overtime rule in the meantime, please contact a KZA attorney.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.