Courthouse Steps: Overtime Regulation

Litigation and Labor & Employment Practice Groups Teleforum

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 have 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 have filed their own suit against the law. The cases have yet to be 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. The business groups also asked the judge to hear their motion for summary judgment that day. Solicitor General Lawrence Van Dyke, D. Michael Hancock of Cohen Milstein, and Jesse Panuccio of Foley & Larner LLP will join us to discuss the court hearing and the future of the overtime rule under the new administration.

Featuring:

• Mr. Lawrence Van Dyke, Solicitor General of Nevada
• D. Michael Hancock, Of Counsel, Cohen Milstein
• Jesse Panuccio, Partner, Foley & Lardner LLP

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 have 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 have filed their own suit against the law. The cases have yet to be 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. The business groups also asked the judge to hear their motion for summary judgment that day. Solicitor General Lawrence Van Dyke, D. Michael Hancock of Cohen Milstein, and Jesse Panuccio of Foley & Larner LLP will join us to discuss the court hearing and the future of the overtime rule under the new administration.

Featuring:

• Mr. Lawrence Van Dyke, Solicitor General of Nevada
• D. Michael Hancock, Of Counsel, Cohen Milstein
• Jesse Panuccio, Partner, Foley & Lardner LLP

Call begins at 12:00 noon Eastern Time.

Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up here. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.