Overtime Litigation Update

By Elizabeth A. Coonan

Many employers jumped for joy when the United States District Court for the Eastern District of Texas issued an injunction halting the implementation of the overtime rule in late 2016. On Tuesday, January 3, 2017, the United States District Court for the Eastern District of Texas issued a ruling denying the U.S. Department of Labor’s request to stay the district court proceedings in the overtime litigation while the DOL’s appeal of the preliminary injunction to the 5^th Circuit is heard. The decision denying a stay of the underlying district court matter essentially places employers in the same position as they existed following the issuance of the preliminary injunction.

In an interesting move, the Texas AFL-CIO moved to intervene in the district court lawsuit as an additional party, presumably to permit the lawsuit to continue in the event the new administration withdraws its appeal.  Briefing at the 5^th Circuit is scheduled to conclude on January 31, 2017, after President Elect Trump’s inauguration. BrownWinick will continue to keep you informed as to new developments.