To enjoin or not to enjoin – that certainly was the pivotal question answered today with respect to the legal fight over the FLSA Final Overtime Rule issued in May 2016. As we recently reported, in mid-September 2016, twenty-one states led by Texas and Nevada filed suit against the Department of Labor and Labor Secretary Thomas E. Perez in an attempt to stop the implementation of the new overtime white-collar exemption rules.
Today, the Court issued its ruling granting the states' application for a nationwide injunction of the FLSA overtime rules. The Court held that the Final Overtime Rule should not be accorded administrative deference because it was contrary to the statutory text of the FLSA and Congress' intent. The Court also examined whether the automatic updating mechanism of the Final Overtime Rule could exceed the DOL's authority under the federal Administrative Procedures Act.
As part of its multi-step analysis, the Court found an injunction best served the public interest. Accordingly, the Court issued a preliminary injunction to stop the implementation of the Final Overtime Rule and notably, did so, on a nationwide basis. The DOL is enjoined from implementing the Final Overtime Rule pending further order by the Court. Although legal challenges are sure to follow and there may be an attempt to clarify the Court's ruling, for now, the Final Overtime Rules are not taking effect on December 1, 2016, until we receive further instructions from the Court.
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