Government Files Appeal in Overtime Case

To the surprise of almost no one, on December 1, 2016 (the original effective date of the Overtime Final Rule), the Department of Justice on behalf of the Department of Labor filed a notice to appeal the preliminary injunction issued by the Texas federal district court that enjoined the Department of Labor from implementing and enforcing the Overtime Final Rule. The Notice of Appeal was filed with the U.S. Circuit Court of Appeals for the Fifth Circuit, which is considered to be a fairly conservative Circuit.

In connection with the filing, the Department of Labor issued the following statement: "The Department strongly disagrees with the decision by the court. The Department's Overtime Final Rule is the result of a comprehensive, inclusive rule-making process, and we remain confident in the legality of all aspects of the rule."

At this point, it is not clear how the appeal will proceed after January 20, 2017. President-elect Donald Trump and his transition team have not indicated how they will direct the DOJ to proceed with the case after Inauguration Day. On the one hand, most businesses (and traditional Republicans) are not in favor of the new overtime rule. On the other hand, during his campaign, President-elect Trump promised to work on behalf of working class Americans, many of whom would be the beneficiaries of this rule.

We will continue to follow this story.