June 26, 2019

June 26, 2019

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June 25, 2019

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June 24, 2019

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Fifth Circuit Judge Halts New Overtime Rule Issuing Nationwide Injunction

On November 22, 2016, just days before the U.S. Department of Labor’s Final Rule regarding the new overtime pay standards under the FLSA for “white collar” employees was scheduled to go into effect, a federal judge in Texas stepped in and issued a nationwide injunction preventing the Department of Labor from implementing and enforcing the new overtime rule pending further judicial review.

As highlighted in our previous blog post earlier this year, under the Final Rule, the minimum salary threshold for executive, administrative and professional employees was scheduled to be raised from $455 per week ($23,660 per year) to $913 per week ($47,476 per year) starting December 1, 2016, which, according to the Department of Labor, would extend overtime eligibility to approximately 4.2 million workers nationwide.

In September, 2016, twenty-one states filed suit against the Department of Labor seeking an injunction to prevent the implementation of the Final Rule.  In granting the injunction, the federal judge ruled that the imposition of the minimum salary threshold (which the ruling characterized as a “de facto salary-only test”) conflicted with Congress’s intent behind the “white collar” exemption, and that the Department of Labor exceeded its delegated authority under the FLSA.

The fate of the new overtime rule remains in question, and it is unclear how the outgoing Obama administration and incoming Trump administration will respond to this ruling.  In the meantime, unless an appellate court takes prompt action to reverse and lift the nationwide injunction, the existing FLSA overtime rules will continue beyond December 1st.



About this Author

Charlotte Drew, Litigation, Attorney, Sherin and Lodgen

Charlotte Drew is an associate in the firm’s Litigation Department. Charlotte represents clients in a variety of complex civil and commercial disputes in federal and state courts.

Prior to joining Sherin and Lodgen, Charlotte was an associate at another Boston law firm, where she represented clients in employment litigation matters, including wage and hour and discrimination. After law school, she was a part-time Fellow with The Honorable F. Dennis Saylor IV, US District Court for the District of Massachusetts. While in law school, she was a legal intern for the Committee for Public...

Brian J MacDonough, Employment Law, Sherin and Lodgen Law Firm

Brian J. MacDonough concentrates his practice in employment law and executive advocacy. He handles a wide range of matters, including contract negotiation and enforcement, discrimination, whistleblowing, wage and hour issues, and wrongful termination. In particular, Brian counsels and represents executives and professionals regarding sophisticated employment and compensation matters, including employment agreements, change of control agreements, equity and deferred compensation vehicles, non-competition and other restrictive covenants, severance /separation terms, and transition agreements.

A trusted advisor to his clients, Brian often works with them throughout their careers as they transition to new opportunities.  As noted by Chambers USA, he “brings a calm demeanor to the table and focuses on the best outcome for his client,” says one interviewee. A client adds: “He is empathetic and very strategic in negotiations.”

In addition to his executive advocacy practice, Brian also litigates cases in both federal and state courts and appears regularly before state and federal agencies, including  the Massachusetts Commission Against Discrimination and U.S. Equal Employment Opportunity Commission.

Highly respected by his colleagues, Brian serves as Co-Chair of the Boston Bar Association’s Labor & Employment Law Section, where he serves as a Council Member. He also served on the committee that prepared draft sexual harassment regulations on behalf of the Massachusetts Commission Against Discrimination and he assisted in the drafting of proposed revisions of the Commission’s procedural regulations.

Brian is a frequent author and speaker on matters of employment law.  He is an editor and co-author of the Massachusetts Employment Law Manual, published by Massachusetts Continuing Legal Education, Inc.  He has also co-authored  employment law chapters for the MCLE’s Massachusetts Basic Practice Manual, and sections of the quarterly Commentary for the Massachusetts Discrimination Law Reporter.  Brian has chaired several programs sponsored by MCLE, including “What Every Lawyer Needs to Know About Employment Law” and “Preventing and Litigating Wage & Hours Cases.”