Update: Texas Court Freezes DOL’s New Overtime Regulation

In Nevada v. U.S. Department of Labor, a federal judge in the Eastern District of Texas ordered a nationwide injunction on a new rule from the Department of Labor (DOL) that would have required many employers to pay overtime to employees who make less than approximately $47,000 per year.  Laurie and Brennan published a blog entry about the rule back in July, available here, describing how the new rule could have extended overtime pay to more than 4 million workers.  However, the court’s injunction – issued on November 22, 2016, just over a week before the rule was scheduled to take effect on December 1, 2016 – determined that the DOL overstepped its authority when it increased the minimum salary for employees who are exempt from the Fair Labor Standard Act’s overtime requirements. Consequently, the DOL’s new overtime regulation is in limbo pending an appeal to the Fifth Circuit, Congressional intervention, or a shift in the DOL’s position under the new administration.