If you rewind just two short weeks ago, the Department of Labor was preparing for the new overtime rule to go into effect on December 1st. However, thanks to a federal judge's injunction blocking the rule, the DOL instead found itself filing an appeal on December 1st in the U.S. Court of Appeals for the Fifth Circuit to try and save the rule. The appeal was brought by Labor Secretary Thomas Perez, Wage and Hour Administrator David Weil, Assistant Administrator Mary Zeigler and the DOL.
Unless the court grants a motion for an expedited hearing or a motion for a stay (which would make the rule take effect), the rule is still blocked indefinitely. Experts believe a stay is highly unlikely. And without an expedited hearing, an appeals court can take months to rule on a lower court's decision. "There are 50 days left in this administration," said Alfred Robinson Jr., an attorney with Ogletree Deakins in Washington, D.C., and former administrator of the Wage and Hour Division. "There's a good chance this rule will not become effective." Employers should continue as they've been doing since the Nov. 22nd injunction.
For a good read on your options, read: New Overtime Rules Put On Hold - Your Potential Responses Explored.
Don't hesitate to contact our Advice & Resolution team if you have any questions about this rule.