HR Management & Compliance

Court Fast-Tracks Suit Challenging Overtime Rule

Update: A ruling on the injunction hearing held on November 16 is expected on November 22. We will provide coverage on the ruling once it is issued.
A federal district court has agreed to fast-track a lawsuit challenging the U.S. Department of Labor’s (DOL) new overtime regulation. It has scheduled oral arguments for November 16, just 2 weeks ahead of the rule’s December 1 effective date.

Overtime

The rule will more than double the salary threshold for employees eligible for overtime. Employees earning less than $913 per week (which amounts to $47,476 annually) will have to be classified as nonexempt from the Fair Labor Standards Act’s (FLSA) overtime requirements, regardless of whether they meet any of the law’s duties tests.

Twenty-one states filed a lawsuit last month, alleging that DOL exceeded its authority. A few weeks later, they requested an emergency injunction that would temporarily halt the rules and also asked the court to expedite oral arguments.

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