Labor Department mulls legal options after overtime ruling

  • November 23, 2016

The Department of Labor said Wednesday it is now considering its legal options in light of Tuesday’s surprise ruling by a Texas federal court that halted the Dec. 1 implementation of new overtime rules with a temporary injunction.

Observers say, however, that much will depend on whether the department can obtain a legal victory before the Jan. 20 inauguration of Donald Trump as president.

The ruling by the U.S. District Court in Sherman, Texas, leaves employers uncertain how to proceed with regard to the overtime rule, which was subject to take effect next Thursday, Dec. 1.

For now, “we go back to where we were six months ago,” said Bennett Pine, a shareholder with Anderson Kill P.C. in New York. “Clearly, the overtime regulation is not going to go into effect Dec. 1, or any time shortly after that.”

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