Department of Labor Appeals Injunction Blocking its Controversial Overtime Rule

One week before the Department of Labor’s (DOL) new overtime rule was set to take effect, a Texas federal judge issued a preliminary injunction that blocked its implementation.  This injunction applies nationwide.  Therefore, no employer is required to comply with the controversial rule that more than doubled the salary level to qualify for the “white collar” exemptions (professional, executive, administrative).

The DOL appealed the injunction on December 1, 2016 to the Fifth Circuit Court of Appeals.  The Court has agreed to expedite its processing of the case, and briefing will be completed by January 30, 2017.  In the meantime, President-Elect Donald Trump has selected a conservative businessman, Andy Puzder, as his nominee for labor secretary.  Puzder, a fast food chain CEO, has been vocal in his opposition of the new overtime rule, which does not bode well for the rule’s long-term viability.