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VOL. 13 • NO. 49
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THURSDAY, DECEMBER 1, 2016
Texas court injunction blocks new OT exempt regulations nationwide Could affect businesses throughout the country
By Dee Longfellow FOR THE INDEPENDENT
On Nov. 22, a federal district court in Texas granted a preliminary injunction that temporarily blocks the U.S. Department of Labor (DOL) from implementing and enforcing its recently revised regulations on the white-collar exemptions to the Fair Labor Standards Act (FLSA). Employers should note that this is only a temporary injunction, not a permanent one, the ACCE noted. The injunction simply prevents the regulations from going into effect on December 1. At a date in the future, a decision about the actual merits of the case will be made, so changes in the FLSA salary threshold for exemption may come back to the table. The U.S. District Court in Texas granted a preliminary injunction against the Department of Labor’s overtime pay rule, which was scheduled to go into effect on Dec. 1. The implementation of the rule is now delayed until further review. Texas Attorney General Ken Paxton, along with Nevada Attorney General Adam Laxalt, has formed a 21-state coalition, according to news reports. Paxton’s office said the new overtime rule “more than doubled the salary threshold for a worker to be entitled to overtime, which would force many state and local governments, as well as private businesses,
to substantially increase their employment costs.” “The Obama administration proved true to form when it ordered the Department of Labor to revise its interpretation of the Fair Labor Standards Act Paxton said, after obtaining the injunction,” he said. “Namely, the administration assumes that through force of will alone, it could order a new economic reality into existence. The finalized overtime rule hurts the American worker. It limits workplace flexibility without a corresponding increase in pay and forces employers to cut their workers hours. All in all, it exchanges the advantages of negotiated benefits, personal to each worker, with a onesize-fits-all standard that only looks good in press statements. Not on my watch.” U.S. District Judge Amos Mazzant who granted the injunction said: “the Final Rule . . . is contrary to the statutory text and Congress’s intent” and “Congress, and not the Department, should make that change.” Other plaintiffs include Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, New Mexico, Ohio, Oklahoma, South Carolina, Utah
Steady as she goes District 4 staff members take turns stacking Oreos on top of the foreheads of their teammates at Institute Day on Monday, Nov. 21. More photos inside. COURTESY PHOTO Addison Independent
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