Federal Court Invalidates DoL’s Proposed Overtime Rule

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In November 2016, a federal district court in Texas granted a preliminary injunction against the imposition of the Department of Labor’s effort to change the white collar exemptions to overtime rules. The rule would have effectively doubled the salary requirement to maintain an exemption: from $455 per week to $913 per week.

The DoL appealed the injunction, but on August 31, 2017, it lost its appeal on summary judgment. Further, and more importantly, yesterday, September 5, 2017, the department asked the 5th Circuit Court of Appeals to voluntarily dismiss its appeal. Assuming that the DoL does not file a new appeal (which is unlikely in this administration), this means that the injunction issued last November will permanently block the rule from being implemented.

If you have questions about this or any other legal issue, please feel free to contact our office.

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