On November 22, 2016, the U.S. District Court for the Eastern District of Texas in the case of State of Nevada, et al v. United States Department of Labor et al temporarily blocked the United States Department of Labor's (DOL's) new federal Fair Labor Standards Act (FLSA) overtime rule that was to become effective December 1, 2016. Twenty-one (21) states filed an emergency motion for a preliminary injunction in October claiming that the DOL exceeded its authority by raising the salary threshold and by providing for automatic adjustments to the threshold every three years.
The nationwide preliminary injunction preserves the status quo while the court makes a final determination regarding DOL's authority to make the final rule as well as the validity of the rule. Other factors that may impact the outcome are a possible DOL appeal and the position of the President-elect on the matter. Agencies should continue to follow the existing overtime regulations until a decision is reached.