Overtime Rule Update

On Tuesday, January 2, 2017, a federal court in Texas denied a request from the Obama administration to delay further proceedings in a case challenging the U.S. Labor Department’s overtime rule. Late last year Judge Amos Mazzant granted a preliminary injunction and, in his opinion, suggested that eventually he would issue a permanent injunction blocking the rule. With Congress unable to fight the rule via Congressional Review Act legislation (the final regulations came too early and the window has shut), the incoming Administration will need to take steps to repeal it by issuing new regulations.

In the meantime, the stay remains and the new overtime rule is NOT in effect.

For additional information, please contact an attorney in our labor and employment practice group: