UPDATE: All for Naught? Court Expedites DOL’s Appeal of Overtime Rule

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08/23/2017

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UPDATE: All for Naught? Court Expedites DOL’s Appeal of Overtime Rule But Challenge Won’t Be Heard Until After Inauguration

By:  Gregory Blueford

Last week, a U.S. Appeals Court granted the Department of Labor’s (“DOL”) motion to expedite the briefing process in its appeal to the preliminary injunction, which has delayed the implementation of the DOL’s proposed overtime rule. You can read more about the proposed rule here, which would have increased the federal “white collar” overtime exemption from $23,660 to $47,479, and the injunction granted by a U.S. District Court (here). The DOL hopes to have the injunction order overturned quickly, so that the overtime rule can go into effect as soon as possible.

With the expedited briefing schedule granted, the DOL’s opening brief is due on December 16, 2016 and the final reply brief by the DOL is due January 24, 2017. The Court also indicated that it would schedule oral argument for the first available hearing after the final reply brief is filed. While this is certainly a minor victory for the DOL, it may end up being all for naught as President-Elect Donald Trump is set to be inaugurated on January 20, 2017.

While Trump has not specifically outlined a plan to abandon the DOL’s appeal, most expect his administration to be more employer-friendly than in years past and to forego further challenges on this rule. In addition, Trump has tapped Andrew Puzder, CEO of the company that operates the fast food chain Carl’s Jr., to be the next Secretary of Labor. Puzder has been a strong and outspoken voice against the DOL’s expanded overtime rule, among other rules that many may deem “employee friendly.”

COUNSEL TO MANAGEMENT:

Now that the Court will not hear the arguments on the merits of the appeal until after the Trump Administration begins, it is very possible that the expanded overtime rule will be taken off life support and will be a thing of the past. Trump has made no secret of his administration’s pro-employer stance and his nomination of Puzder as the Secretary of Labor cements that position. Along with the likely disposal of the overtime law, employers can expect more “employer friendly” polices to be forthcoming in the New Year. The Saqui Law Group will keep you informed of any new developments with this overtime law and all important employment and labor legal developments.

 

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