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Preliminary Injunction Issued Against Department Of Labor's Overtime Rule

Monday, November 28, 2016   (0 Comments)
Posted by: Elizabeth Peters
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A district court in Sherman Texas last week granted a preliminary injunction that blocked a sweeping new Department of Labor regulation that would have required employers to start paying overtime to workers earning salaries of less than $47,476 annually. The injunction was issued Tuesday by Judge Amos Mazzant.

The Labor Department had completed rulemaking in May. In September The U.S. House of Representatives approved a measure to delay the rule by six months, despite a White House promise to veto the bill. The rule's effective date was moved from Dec. 1 to June 1. Meanwhile, a group of 21 states and a coalition of more than 50 business groups challenged the rule on the grounds that it overstepped the government’s authority.

Judge Mazzant said in the order that the challengers had made a sufficient case “that the Department’s salary level under the Final Rule and the automatic updating mechanism are without statutory authority.”

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