Texas federal court fast-tracks suit challenging DOL’s overtime rule

October 20, 2016 - by: Kate McGovern Tornone 0 COMMENTS

Update: A ruling on the November 16 injunction hearing is expected on November 22. We will provide coverage on the ruling once it is issued.

A federal district court has agreed to fast-track a lawsuit challenging the U.S. Department of Labor’s (DOL) new overtime regulation. The court has scheduled oral arguments for November 16, just two weeks ahead of the rule’s December 1 effective date.

The rule will more than double the salary threshold for employees. Employees earning less than $913 per week ($47,476 annually) will have to be classified as nonexempt from the Fair Labor Standards Act’s (FLSA) overtime requirements, regardless of whether they meet any of the duties tests.

In September, 21 states filed a lawsuit alleging that the DOL exceeded its authority. A few weeks later, the states requested an emergency injunction to temporarily halt the rule and asked the court to expedite oral arguments. The court granted the second request, scheduling arguments for November 16, just two weeks before the rule takes effect.

Experts continue to recommend that employers move forward with implementation—and soon. Some have suggested employers should make any necessary changes well before December 1—for example, implementing changes during the week of Thanksgiving because the effective date falls on a Thursday. Adopting changes at least a few days early would allow employers to avoid reclassifying employees in the middle of a workweek, which could create wage and hour problems.

Business groups filed a similar legal challenge, but the cases were consolidated in State of Nevada v. U.S. Department of Labor, No. 4:16-cv-731 (E.D. Texas, Oct. 19, 2016).

The overtime rule’s effective date is rapidly approaching. On October 25, BLR will host “Communicating the Impact of DOL’s Final Overtime Rule: How to Effectively Inform Employees of Exemption Status Changes.” For information on how to register for the 60-minute webinar, click here.

About Kate McGovern Tornone:
Kate Tornone is an editor at BLR. She has almost 10 years’ experience covering a variety of employment law topics. Before coming to BLR, she served as editor of Thompson Information Services’ ADA and FLSA publications, coauthored the Guide to the ADA Amendments Act, and published several special reports. She graduated from The Catholic University of America in Washington, D.C., with a bachelor of arts in media studies. Kate can be reached at ktornone@blr.com.
Bookmark and Share Send to a Colleague

Currently there are no comments related to this article. You have a special honor to be the first commenter. Thanks!

Leave a Reply