In May, the Department of Labor announced a new overtime regulation, which would require all employers to pay overtime to their salaried employees who make under $47,476 annually. The rule was set to take effect on December 1, 2016. However, 21 states filed suit against the federal government claiming that the rule violated the Fair Labor Standards Act (FLSA) and states’ rights by increasing the overtime threshold, which was $23,660 under the FLSA, so drastically and by setting automatic increases to the threshold every three years. The states argue the rule will decrease full-time employment while increasing unemployment and will burden state governments unlawfully under the 10th Amendment by forcing them to conform to the new regulations. The U.S. Chamber of Commerce and a coalition of business groups also filed their own suit against the law. The cases were consolidated.
On November 16, Judge Mazzant of the District Court for the Eastern District of Texas heard the states' motion for a preliminary injunction to temporarily block the rule. On November 22, Judge Mazzant granted the states’ motion and issued a preliminary injunction prohibiting the Department of Labor from implementing and enforcing the new rule. Solicitor General Lawrence VanDyke, Michael Hancock of Cohen Milstein, and Jesse Panuccio of Foley & Larner LLP joined us to discuss the court's ruling and the future of the overtime rule under the new administration.
- Mr. Lawrence Van Dyke, Solicitor General of Nevada
- D. Michael Hancock, Of Counsel, Cohen Milstein
- Jesse Panuccio, Partner, Foley & Lardner LLP