The new overtime rules setting a $913.00/week salary level (up from $455.00/week) to become effective on December 1, 2016 has been stopped in a case brought by 21 states against the US Department of Labor. State of Nevada, et al v. US Department of Labor, et al, Case No. 4:16-cv-00731.
The U.S. District Court in the Eastern District of Texas issued a nationwide preliminary injunction saying the Department of Labor’s rule exceeded the statutory authority of the agency.
It is still too early to determine what, if any, posture the Donald Trump administration will take in the shift away from centralized power in our nation’s capital. The Trump campaign has spoken out against Obama-backed government regulation and generally aligns with the business groups that stridently opposed the overtime rule.
The US Department of Labor said in a statement on 11/22/2016:
“We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The department’s overtime rule is the result of a comprehensive, inclusive rulemaking process, and we remain confident in the legality of all aspects of the rule.”
Stay tuned for the rest of the story.