On Tuesday, November 22, a Texas federal judge blocked the Department of Labor overtime rule that would make more than 4 million private-sector workers eligible for extra pay.
U.S. District Judge, Amos Mazzant, imposed a preliminary injunction against the rule Tuesday at the request of 21 states, the U.S. Chamber of Commerce and other business groups. While the rule was set to take effect December 1, the injunction preserves the status quo. The Court will now adjudicate the rule's validity.
Separate from litigation, Congressional Republicans are keen to overturn the rule legislatively. Although President Obama would likely veto any such effort, President-elect Trump could look more favorably on such an approach when he takes office in January. President-elect Trump last August said he favored exempting small businesses from the rule. Absent legislative action, the Trump Administration could also propose a new rule. The Trump team has made clear that rolling back regulations that increase burdens on job creators is a top priority.
NMHC/NAA strongly favor repealing the current rule and support all avenues to achieving that objective.
More information on DOL’s overtime rule can be found here.