With the clock counting down toward the December 1, 2016, effective date of the U.S. Department of Labor’s new overtime rules, officials from 21 states have stepped forward to try to stop the DOL in its tracks. In particular, on September 20, 2016, Texas Attorney General Ken Paxton, backed by 21 state officials from across the country, filed a lawsuit in federal court in Sherman, Texas, challenging the DOL’s rules. The lawsuit challenges the rules on several substantive and procedural grounds and seeks an injunction preventing the rules from taking effect. Secretary of Labor Thomas Perez expressed confidence that the rules will survive all legislative, judicial or other challenges. The same day, private sector groups, led by the U.S. Chamber of Commerce, filed a suit seeking the same relief in the same court.
It is clear that both sides of this battle will approach it with vigor, although it is not at all clear in whose favor the court will rule. As a result, employers who are making plans to comply with the rules as of December 1 should not abandon those plans just yet. We will follow the lawsuit closely, and we will be prepared to advise our clients as to any developments that may arise.