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DOL Appeals Overtime Injunction

DOL Appeals Overtime Injunction

DOL’s appeal could result in a lengthy court battle over overtime rule.

Yesterday the U.S. Department of Labor (DOL) filed an official notice of appeal at the U.S. District Court for the Eastern District of Texas challenging a federal judge’s ruling blocking the implementation of new overtime regulations.

The new federal overtime rule, which had been slated to go into effect yesterday as well until the judge issued the nationwide injunction, would have raised the salary threshold employees are required to meet in order to be considered exempt for overtime pay under the white collar exemptions of the Fair Labor Standards Act (FLSA), among other changes.

[For a full recap of these changes, check out our infographic: A Visual Overview of the DOL’s New Overtime Rule.]

In a statement issued by a DOL after the judge’s ruling on on Wednesday, November 23, the DOL hinted that an appeal might be on the horizon:

“The Department strongly disagrees with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The Department’s Overtime Final Rule is the result of a comprehensive, inclusive rule-making process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.”

What happens now?

The DOL’s decision to appeal the injunction means that the final rule is not dead, although it is still unclear when, or if, new regulations would go into effect. Experts are predicting that the legal process could be quite lengthy, and whatever decision is made might even end up appealed all the way to the Supreme Court. It’s also unclear how a Trump administration would choose to handle the issue, if a decision is not reached before President-elect Trump takes office, although many have speculated that he wouldn’t pursue it.

What this means for employers:

As a leading national professional employer organization (PEO) and HR outsourcing firm, G&A Partners has been helping its clients prepare for the changes to the overtime regulations for the past several months and, now, strategize on how to proceed in light of the injunction.

G&A Partners’ suggestions for employers, outlined in a previous post published in the aftermath of the injunction, remain the same even after this new development:

    • Businesses that have already implemented plans to comply with overtime regulations in the rule prior to the injunction should be cautious about unravelling them, especially given the renewed life the DOL’s appeal gives the rule.
    • Businesses that have not already implemented any changes, but were planning to do so, might want to consider holding off on doing so until a final decision is reached, although that will likely not be for several months.

This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.

10 responses to “DOL Appeals Overtime Injunction”

  1. Kathy Walters says:

    I am glad it has been for now. It was a large jump especially for small businesses.

  2. David London says:

    This article really brings to light the issues that people face on a day to day basis

  3. Sonia Scott says:

    Excellent article, very well written and too the point!

  4. Tammy says:

    Excellent article. I am glad it was put on hold. There have been so many changes that have increased costs that this was another one we didn’t need.

  5. Michael Galligan says:

    Government needs to get out of business. They can’t even run the government efficiently.

  6. Chris von Schweinitz says:

    I think the overtime rule needs to not be implemented. This has cost many businesses that made the changes, including mine. I hired one less employee because of it, and lowered raises to others in order to keep my managers. In other words, the government decided how to best distribute wages in my company, rather than me doing it on market wages and employee merit. How do you think the employees that got lower raise would feel if I told them it is because of a government rule even though they did excellent work? I agree with Michael, government needs to reduce their involvement. Another example is raising the minimum wage to $15. In my industry, if that happens EVERYONE’s property insurance premiums will rise. My prices for restoration will increase, thus insurance payouts increase, thus premiums rise. Are you ready for that? Did you get a raise at your company in order to pay more for insurance premiums on your house or business?

  7. Tommy says:

    It would only affect one of my employees on the first round…but glad we have a reprieve for now!

  8. Amy Dozier says:

    I appreciate the article. It was very well put together. Fortunately, we prepared for the regulation to take effect on Dec. 1st and are ready if/when they decide to implement.

  9. Donna Fore says:

    Fortunately, we would not be affected either way.

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