Connecticut Employment Law Blog Insight on Labor & Employment Developments for Connecticut Businesses

BREAKING: Judge Orders Halt to New Overtime Rule

Posted in Featured, Highlight, Laws and Regulations, Wage & Hour

I have this running joke with my wife that anytime I’m on vacation, it seems that big employment news breaks.

And this vacation is no exception.

And it’s probably the biggest employment law news this year. Not the best time for me to have to write a blog post on my phone.  Ah well.  You all will forgive any typos.

Last night, a Texas judge issued a nationwide injunction barring implementation of the new overtime rule that was scheduled to go into effect December 1.

The judge stated:

The parties dispute the scope of the injunction. The State Plaintiffs seek to apply the injunction nationwide. Defendants contend a nationwide injunction is inappropriate. Instead, Defendants suggest the injunction should be limited to the states that showed evidence of irreparable harm. Absent contrary intent from Congress, federal courts have the power to issue injunctions in cases where they have jurisdiction. It is established that “the scope of injunctive relief is dictated by the extent of the violation established, not by the geographical extent of the plaintiff class.” A nationwide injunction is proper in this case. The Final Rule is applicable to all states. Consequently, the scope of the alleged irreparable injury extends nationwide. A nationwide injunction protects both employees and employers from being subject to different EAP exemptions based on location.

I had hinted last Friday that this was a long shot lawsuit but this year we’ve seen more than our fair share of long shots coming true (Cubs anyone?).

It’s possible that this may be appealed but that seems unlikely with a new President set to take office in less than two months.  Rather it seems more likely that the rule is now on hold…perhaps permanently.

In any event, employers that haven’t implemented the plan yet do not need to do so now. The ones that have may wish to roll back any changes (but with caution).  And talk to your local employment attorney.

I’ll have more upon my return next week.