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Court to Hear DOL Appeal of Overtime Rule; Decision Expected After Trump Inauguration

The U.S. Court of Appeals for the Fifth Circuit granted the U.S. Department of Labor’s request to expedite its appeal of a temporary injunction issued by the U.S. District Court for the Eastern District of Texas, preventing the new rule from going onto effect. The final rule was to have gone into effect on Dec. 1...
December 14, 2016

The U.S. Court of Appeals for the Fifth Circuit granted the U.S. Department of Labor’s (DOL’s) request to expedite its appeal of a temporary injunction issued by the U.S. District Court for the Eastern District of Texas, preventing the new rule from going onto effect. The final rule was to have gone into effect on Dec. 1.

The rule would expand the pool of employees eligible for overtime by doubling the salary threshold to $47,476. A preliminary injunction is not a permanent order and is subject to modification (including an order making it permanent), or it could be vacated entirely. The DOL issued a statement saying it disagreed with the decision and was “currently considering all of our legal options.”


Although the Fifth Circuit agreed to expedite the appeal, the briefing schedule issued by the Court confirms that the appeal will still not be decided before Donald Trump is inaugurated as the next President of the United States on January 20, 2017.


Trump’s announced intent to nominate Andrew Puzder as his Secretary of Labor sends a fairly clear signal that the Trump Administration will not support the new regulations as they are currently written and may even withdraw the pending appeal before a decision is issued by the Court.  The same day that DOL issued its final regulations, Puzder wrote an opinion piece for Forbes soundly criticizing the regulations as counterproductive . PIA National has strongly opposed the rule due to its negative impact on small businesses, including independent insurance agencies.

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