UPDATE: What A Wreck - 21 States and Dozens of Business Groups Crash The Courts to Halt DOL Overtime Rule

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UPDATE: What A Wreck - 21 States and Dozens of Business Groups Crash The Courts to Halt DOL Overtime Rule

 By: Gregory Blueford

Last week, twenty-one states, including Arizona and Nevada, sped in and filed an emergency motion for preliminary injunction contesting the constitutionality of the Department of Labor’s (“DOL”) new rule expanding overtime protections for “white collar” workers under the Fair Labor Standards Act (“FLSA”), which raises the salary threshold for the white collar exemption to $47,476, and which you can read more about here. This motion, filed in a Texas federal court, seeks to keep the overtime rule from taking effect until there can be a full hearing on the merits of the law (and potential review by higher courts). The States are arguing that the application of the overtime rule is a violation of the Tenth Amendment right to sovereignty and that the new law will result in irreversible budget damage to the States.

In addition to the States’ request for an injunction, more than fifty business groups from across the country, including the U.S. Chamber of Commerce, also recently filed a lawsuit challenging the new rule, alleging that the justifications for the new salary threshold are not permissible under FLSA. Those business groups have asked the federal court in Texas to consolidate the States’ case with theirs because they involve common questions of law and fact regarding the legality of the new overtime rule.

Also, the House of Representatives recently passed a bill, H.R. 6094, which – if enacted – would delay enforcement of the new overtime rule until June 1, 2017.  H.R. 6094 is currently in the Senate and has been placed on the calendar to be heard at a later date.


These three challenges to the DOL’s overtime rule cast serious doubt as to whether this rule, as currently constructed, will ever go into effect. With these ongoing legal and legislative challenges to the implementation of the DOL’s rule, as well as the dramatic changes in store for California following the passage of AB 1066 expanding overtime for farmworkers, employers must be more cautious than ever in ensuring that they are properly compensating their employees for overtime.  Contact the experts at the Saqui Law Group with any questions you may have regarding overtime compensation.


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