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Federal Court Issues Nationwide Injunction Temporarily Barring DOL From Implementing New Overtime Rule

Volume 15, Issue 26
November 22, 2016

National Labor Relations BoardEarlier today, a federal judge in Texas issued a nationwide injunction temporarily enjoining the U.S. Department of Labor (DOL) from implementing its new, controversial overtime and salary-increase rule that was due to take effect on December 1, 2016. The new rule set a new annual salary threshold of $47,476 for certain types of employees, such that anyone earning less than that level, regardless of job duties, could no longer be exempt from federal overtime and minimum wage requirements.

The Court concluded that the defendants in two consolidated cases (composed of 21 states, including Nevada, the U.S. Chamber of Commerce, and other business groups) demonstrated a likelihood of success on the merits that the DOL exceeded its authority under the Fair Labor Standards Act (FLSA) by utilizing a significantly increased salary-level test and an automatic inflation adjustment mechanism as part of its final rule.

See Memorandum Opinion and OrderState of Nevada v. United States Department of Labor, Case No. 4:16-cv-00731-ALM, E.D. Tex. Nov. 22, 2016).

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