From labor disputes cases to labor and employment publications, for your research, you’ll find solutions on Bloomberg Law®. Protect your clients by developing strategies based on Litigation...
The Obama administration exceeded its authority when it roughly doubled—to about $47,500—the annual salary threshold below which workers are eligible for overtime pay, a group of 21 states challenging the rule told the U.S. Court of Appeals for the Fifth Circuit in a brief filed Jan. 17 ( Nevada v. DOL , 5th Cir., No. 16-41606, brief filed 1/17/17 ).
The brief marked the first occasion challengers to the rule told the appeals court why it should uphold a district judge’s Nov. 22 order that preliminarily enjoined the rule. The DOL appealed the injunction.
The salary threshold update was scheduled to take effect Dec. 1, but Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas granted a request by the states and business groups to temporarily block it. He found the Fair Labor Standards Act doesn’t empower the Department of Labor to establish a salary threshold for determining whether someone qualifies as an executive, administrative or professional employee who is ineligible for overtime.
“One federal court has already recognized that the Department of Labor’s new rule diverges sharply from the text of the actual federal law,” Nevada Attorney General Adam P. Laxalt said in a statement provided to Bloomberg BNA. “I am hopeful and expectant that any court to review this law will reach the same conclusion, and I am proud to be leading the fight against this especially intrusive, unlawful federal overreach.” Nevada and Texas are leading the states' challenge.
An alternate ground for voiding the rule as to the states is that the Tenth Amendment to the U.S. Constitution prohibits the DOL from applying the salary test to them unless Congress makes “unmistakably clear” its intent for the FLSA to apply to the states, the brief says. Any argument that the DOL’s interpretation is entitled to deference because the FLSA falls under its purview would strengthen the states’ contention that the statute lacks the unmistakable clarity needed to apply it to them, they said.
Amicus briefs in support of the states’ position are due on or before Jan. 24, and the DOL’s reply is due Jan. 31. President-elect Donald Trump has expressed antipathy toward the rule and Obama administration regulations, but he hasn’t said whether he’ll order the DOL to drop the appeal after he’s inaugurated Jan. 20.
To contact the reporter on this story: Jon Steingart in Washington at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)