Judge hopes to rule on OT challenge next week: What to watch for
Employers hoping for an injunction that would delay the implementation of the DOL’s new overtime exemption rule may get their wish next week.
Judge Amos L. Mazzant, III, of the U.S. District Court for the Eastern District of Texas, Sherman Division, just heard arguments pertaining to an emergency motion for preliminary injunction of the DOL’s changes to the overtime exemption salary threshold — and he said he hopes to having a ruling on the injunction request by Tuesday, November 22.
If Mazzant issues an injunction, it wouldn’t kill the new rule. An injunction would simply halt it from becoming effective on December 1. It would make time for further court proceedings to be held over whether the DOL had standing to create such a rule. Then, only after those hearings have concluded, would employers be subject to it — if the DOL is deemed to have acted within the scope of its powers.
Background
In September two lawsuits were filed in the Texas court challenging the DOL’s authority to more than double the exempt salary threshold to $47,476, as well as tie the threshold to an automatic escalator.
One lawsuit was filed by 21 states, and the other was filed by business groups, like the U.S. Chamber of Commerce. It is believed that both lawsuits were filed in the Texas court because of the court’s history of acting on such matters quickly.
Then, in October, both lawsuits were consolidated together and the plaintiffs asked the court to consider a motion to issue a preliminary injunction that would halt the new regulations on an expedited basis. The court agreed to hear the motion, which is what brought the arguments before Mazzant.
What happened
According to those familiar with the proceedings, there’s no way to tell which way Mazzant is leaning. He listened to arguments from the states, business groups and DOL for nearly three hours, and he described the increase in the salary threshold as “radical” and “drastic.” But that’s far from a guarantee he’s leaning toward issuing an injunction.
Mazzant also put no hard deadline on when his ruling would come down, but he said he hopes to issue it by Tuesday.
Legal experts have been predicting the suits will do little to delay or kill the rules, but they may be successful in repealing the automatic increases to the new $47,676 salary threshold.
As a result, employers need to continue prepping for the rules’ Dec. 1, 2016 effective date.
Stay tuned.
Info: Here are the minutes from the injunction hearing.
