Federal Court Blocks Implementation of New Overtime Exemption Rule: Now What?

Bender’s Labor & Employment Bulletin January 2017

David W. Garland, Chair of the firm’s National Labor and Employment Steering Committee, and Steven M. Swirsky and Jeffrey H. Ruzal, Members of the Firm in the Employment, Labor & Workforce Management practice, authored an article in Bender’s Labor & Employment Bulletin, titled “Federal Court Blocks Implementation of New Overtime Exemption Rule: Now What?”

Following is an excerpt:

In an unexpected turn, within a week of the December 1 effective date, a federal district court in Texas issued a nationwide preliminary injunction blocking the DOL from implementing the Final Rule.4 On December 1, 2016, the DOL filed a notice of appeal of the district court’s decision. In light of the injunction, and after having nearly seven months preparing to implement the changes required by the Final Rule (including, in many instances, taking affirmative steps to effect the changes), employers must decide how to proceed—and also consider what changes might be forthcoming in the Trump Administration.