Employment Law Bulletin: U.S. District Court Enjoins Implementation and Enforcement of Department of Labor Regulations Expanding Overtime Coverage

by Russell Landy, Partner, Damian & Valori LLP

On November 21, 2016, we issued a bulletin discussing the December 1, 2016 implementation of the Department of Labor regulations granting overtime eligibility to millions of white collar workers (or making millions of white collar workers eligible for overtime pay).

Subsequently, on November 22, 2016, a United States District Court Judge from the Eastern District of Texas issued a nationwide preliminary injunction prohibiting the new overtime regulations from going into effect on December 1, 2016, and enjoining the Department of Labor from enforcing them. 

The lawsuit challenging the new regulations was filed by the State of Nevada, and twenty other states, and was consolidated with a case filed by the Plano Chamber of Commerce and more than fifty other business organizations opposing the regulations.  In ruling on the Plaintiffs' Emergency Motion for Preliminary Injunction, the Court determined that:

The State Plaintiffs have established a prima facie case that the Department's salary level under the Final Rule and the automatic updating mechanism are without statutory authority.  The Court concludes that the governing statute for the [overtime] exemption ... is plain and unambiguous and no deference is owed to the Department regarding its interpretation.

This is a rapidly changing area of the law.  If you have any issues concerning this area, please contact our office or another competent lawyer to determine the most current law and regulations and address their applicability to your particular situation.

About The Author:  Russell Landy is a Partner at the law firm Damian & Valori LLP, and focuses his practice in the areas of Complex Business Litigation, Labor and Employment Litigation, Business Torts, Real Estate and Community Association Litigation, and Contract Litigation. He can be reached at rlandy@dvllp.com or (305) 371-3960.