On September 20 we reported about a lawsuit by 21 states seeking to block the U.S. DOL’s new overtime exemption rules. This week, the states followed up their complaint by filing an Emergency Motion for Preliminary Injunction, asking the court to block enforcement of the new rule pending a final ruling on the states’ claims. According to the court’s docket no hearing date has been set.
There have been no further developments in another lawsuit filed on the same day by the U.S. Chamber of Commerce and a coalition of business groups. Unlike the states, the business groups are not challenging the minimum salary increase scheduled to take effect December 1. Rather, they are taking aim at the automatic minimum salary increases written into the new rules, and at the specific rules regarding what sorts of incentive compensation may be counted toward the minimum salary. To date, the business groups have not filed a motion for a preliminary injunction. The court’s docket reflects that the Labor Department’s answer to the complaint is not due until November 21, 2016.
At this point, we cannot recommend that employers pin their hopes on these lawsuits to relieve them from having to comply with the new FLSA exemption rules effective December 1, 2016.