November 28, 2016 - Last week the U.S. District Court in Texas blocked the Department of Labor's overtime rule from going into effect on December 1. The emergency motion was granted at the request of 21 states, ASAE, the U.S. Chamber of Commerce, and other like-minded organizations. The lawsuit was filed on the grounds that the DOL has overstepped its authority and put forward an onerous regulation that has to be stopped before the implementation date.
Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas granted a nationwide preliminary injunction against implementation of the DOL overtime rule. The judge granted the injunction as it "preserves the status quo while the court determines the department's authority to make the final rule as well as the final rule's validity." In this injunction the court ruled regulation exceeded the authority granted to the DOL by Congress.
Yesterday's decision was only temporary, but it delays the implementation from taking place as planned next week. The DOL will very likely appeal the injunction.
CAWA will continue to monitor this issue closely. Should you have any questions regarding this alert, contact the attorney in your state (see
www.cawa.org). Recall, as a member you can receive up to ½ hour a month of
FREE legal consultation.