The most comprehensive resource available for payroll professionals. This service provides payroll news, white papers, custom research answers, webinars on the hottest payroll topics, survey and...
The preliminary injunction imposed by a Texas federal district court, preventing the Labor Department’s new overtime rule from taking effect, rests on an error of law and should be reversed, the department said in a brief filed Dec. 15 with a federal appeals court.
The department, in challenging the district court’s claim that the Fair Labor Standards Act does not allow the use of a salary test for the white-collar overtime exemption, said that the U.S. Court of Appeals for the Fifth Circuit has “expressly upheld the department’s authority to use a salary test” and that “every circuit to consider the question has upheld the department’s salary-level test.”
The district court also did not identify a plausible basis to overturn the final rule’s salary level, which was in keeping with salary levels adopted over the past 75 years, the department said in the brief ( Nevada v. DOL, 5th Cir., No. 16-41606, appellant’s brief filed 12/15/16 ).
In challenging the preliminary injunction, which was issued Nov. 22, the department focused on the harm caused by the delay in bringing the lawsuit, the injunction’s overly broad application and the uncertainty sustained by those affected. The new rule was to have taken effect Dec. 1.
The injunction is “particularly unwarranted” because it took nearly five of the six months since the rule’s publication to its scheduled effective date for the 21 states to bring the lawsuit, the department said.
The district court also erred in issuing a nationwide injunction affecting third-party employers that were not party to the lawsuit and that did not seek the injunction, the department said. The 21 states that brought the lawsuit failed to demonstrate irreparable harm, which is a prerequisite to a preliminary injunction, the department said.
Millions of workers would gain FLSA overtime protection under the final rule, but many such workers work overtime only occasionally, if at all, so the final rule’s effect on employers’ compliance costs, a basis for the injunction, should be relatively low, the department said.
The department also reiterated its broad authority to define and limit the scope of the exemption.
An expedited hearing of the request to remove the injunction was granted Dec. 8 by the appeals court. All briefs in the case are to be filed with the court by Jan. 31 and oral arguments are to occur soon after. The court is to rule on the appeal after oral arguments are heard.To contact the reporter on this story: Christine Pulfrey in Washington at firstname.lastname@example.org@bna.com. To contact the editor responsible for this story: Michael Trimarchi at email@example.com.
Copyright © 2016 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 firstname.lastname@example.org.
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 email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)