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UPDATE: Judge Issues Injunction Postponing Effective Date of Fair Labor Standards Act (FLSA) Overtime Rules

Tuesday, November 22, 2016

Today, a U.S. District Court judge from Texas issued a preliminary injunction postponing the effective date of the U.S. Department of Labor (DOL)’s overtime rule. The judge issued the injunction in response to a legal challenge brought by a coalition of more than 50 business groups and 21 state attorneys general. The rule was scheduled to go into effect on December 1.

Originally, two lawsuits challenging the rule were filed in federal court on September 20 — the first suit on behalf of 21 state attorneys general and the second on behalf of a group of trade associations and chambers of commerce. On October 12, the states filed an emergency motion to temporarily prevent the rule from taking effect while the court challenge proceeds. On October 19, the judge granted a request filed by the states and the 50 business groups to have their two cases consolidated.

It is expected that DOL will appeal this ruling quickly, however it is uncertain how long the appeal may take. If the preliminary injunction pushes the implementation date from December 1 to past January 20, 2017, then there will be room for the Trump administration to reopen the rulemaking and revise the final rule.

Source: CUPA-HR Washington Insider Alert