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U.S. DEPARTMENT OF LABOR APPEALS PRELIMINARY INJUNCTION ISSUED BY FEDERAL COURT

On December 1, 2016, the U.S. Department of Labor (DOL) filed an appeal to the U.S. Court of Appeals for the Fifth Circuit seeking that the preliminary injunction issued by a lower-level federal Texas court on November 22, 2016 be overturned. As noted in a previous posting, the preliminary injunction temporarily blocked new overtime pay regulations from taking effect on December 1, 2016.

By itself, the DOL’s appeal does not affect the preliminary injunction, which will remain in place until the appeal is heard by the Fifth Circuit. At this time, however, the Fifth Circuit is not expected to take action on the appeal until after the Trump Administration takes office in January 2017. The Trump Administration may decide not to pursue the appeal, and the injunction would thus remain in place, leaving the new regulations in limbo.

Employers are encouraged to check back often and consult with Mitzel Group employment attorneys regarding developments in this case and how such developments may affect their businesses.