Federal Judge Grants Preliminary Injunction Temporarily Enjoining DOL's December 1, 2016 Overtime Rule

A federal judge in the United States District Court for the Eastern District of Texas has granted a nationwide preliminary injunction that temporarily enjoins the enforcement of the Department of Labor’s (“DOL”) Overtime Rule.[1]  The DOL’s Overtime Rule, which would have gone into effect December 1, 2016, would have increased the minimum salary threshold for White-Collar employees to be exempt from overtime from $455 per week ($23,660 per year) to $913 per week ($47,476 per year).  For now, the preliminary injunction preserves the status quo, meaning employers must only pay White-Collar employees who satisfy the DOL’s duties test at least $455 per week ($23,660 per year) on a salary basis in order for the employee to be exempt from overtime. 

While this is not a permanent injunction, President-elect Donald Trump assumes office on January 20, 2017, and is unlikely to defend the rule,[2] meaning it is likely that the DOL’s Overtime Rule will not take effect unless the DOL successfully prevails on an expedited appeal of the preliminary injunction order during the remaining time President Obama is in office..  Campbell Litigation will continue to track this development and report back when further updates are available.

[1] Nevada v. U.S. Dep’t of Labor, No. 16-cv-00731 (E.D. Tex. Memorandum Opinion and Order, Nov. 22, 2016).

[2] Melanie Trottman and Ruth Simon, Overtime Pay Rule to Go Into Effect but May Not Last, The Wall Street Journal (Nov. 22, 2016).