October 17, 2021

Volume XI, Number 290

Advertisement
Advertisement

October 15, 2021

Subscribe to Latest Legal News and Analysis

October 14, 2021

Subscribe to Latest Legal News and Analysis
Advertisement

Texas Federal Judge Blocks U.S. Department of Labor from Implementing Controversial Rule Expanding Overtime Protections

On November 22, 2016, Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas entered a nationwide injunction blocking the U.S. Department of Labor from implementing a controversial rule that would have expanded overtime protections. The judge held that the rule improperly creates a de facto salary test for determining which workers fall under the Fair Labor Standards Act’swhite collar” exemptions. Under the new regulations that would have gone into effect on December 1, 2016, the minimum annual salary threshold required to qualify for any "white collar" exemption was increased to $47,476, a significant increase from existing regulations.

The judge sided with 21 states and business groups by deciding to issue a preliminary injunction that blocks the DOL’s overtime expansion regulation from taking effect on December 1. “The court determines that the state plaintiffs have satisfied all prerequisites for a preliminary injunction,” Judge Mazzant said. Specifically, the judge held the states and business groups were able to show a likelihood of success in their challenge of the new overtime rule and irreparable harm if the new overtime rules went into effect, while the DOL failed to show it would be harmed if the rules were delayed. The court further stated that the “state plaintiffs have established a prima facie case that the Department’s salary level under the final rule and the automatic updating mechanism are without statutory authority.”

Given this nationwide injunction, the December 1, 2016, effective date for the new rule is stayed from implementation and enforcement pending a final decision from this court or a higher court of appeals.

© 2021 Wilson ElserNational Law Review, Volume VI, Number 329
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Bruno W. Katz, professional liability litigator, Wilson Elser, Law firm
Partner

Bruno Katz maintains a diverse business litigation practice that includes labor and employment, professional liability, corporate litigation and complex, multi-party litigation. Bruno represents a wide variety of clients, including hospitality companies, insurance brokers and agents, real estate agents, utility companies, attorneys, transportation companies and pharmaceutical/home health care companies.

Bruno, a captain in the Navy Reserves with the Judge Advocate General's Corps (JAG), is currently serving as the Staff Judge Advocate for...

619-881-3317
Advertisement
Advertisement
Advertisement