Update on Legal Challenges to New FLSA Overtime Regulations


As you might recall, last month we wrote about the legal challenges that have been filed against the U.S. Department of Labor’s new regulations governing the “white collar” exemptions from overtime. In September, two such lawsuits were filed in a Texas federal district court—one by a group of 21 states and the other by a group of 55 pro-business organizations. Although there was no activity in these cases for several weeks after their filing, things have heated up in both cases in the last week.

Last Wednesday, the group of states filed an emergency motion for a preliminary injunction against the implementation of the new regulations. The court has scheduled a hearing on the motion for November 16, 2016, and is expected to issue a decision before the new regulations’ effective date of December 1, 2016. Last Friday, the pro-business groups filed a motion for summary judgment and requested a decision before the new regulations’ effective date. A hearing date has not yet been scheduled on this motion. Just yesterday, the pro-business groups asked the court to consolidate the two cases so as to expedite matters further.

It appears that decisions on these motions are likely to be issued only days before the new regulations go into effect. It is also far from certain that these challenges or any legislative efforts to overturn the new regulations will succeed. Therefore, we recommend that employers affected by the regulations continue to prepare as if the December 1 effective date will stand. Nevertheless, we will be sure to keep you updated of any developments.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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