New Overtime Rules Put on Hold by Federal Judge
In the October 2016 issue of this Client Advisory, we reported on new rules issued by the U.S. Department of Labor, to take effect December 1, 2016, that would expand the eligibility of many workers for overtime pay. However, on November 22, 2016, a federal trial judge in Texas issued a nationwide injunction against the implementation and enforcement of the new regulations, on the grounds that they exceeded the authority delegated to the Labor Department by Congress. The injunction means that the regulations are not now in effect, pending further proceedings in the litigation. Some commentators have opined that if the injunction is overturned at some point it is not clear whether the rules would take effect retroactively. The incoming Administration’s position on the litigation and whether it will wish to implement the rules is also not yet known. Property owners, building managers, and other employers with employees who would be covered by the new rules should consult their labor and employment counsel concerning their options and the associated risks.