States Seek Emergency Injunction Against DOL Overtime Rule, Some Employers Already Increasing Salaries

October 21, 2016

Twenty-one attorneys general have requested an emergency preliminary injunction against the Labor Department's final overtime rule, and the federal judge has consolidated the two complaints before the court into one legal challenge.  Arguments on the injunction will take place on November 16, 2016, just two weeks before the rule's December 1 implementation date.  The states are seeking an injunction, while a group of business associations have requested summary judgment declaring the rule unlawful.  According to the attorneys general, without the court's intervention the DOL rule "will impose upon the Plaintiff States irreversible budgetary damage, displacement of State policy choices about crucial governmental functions and services, workplace and administrative disruption, and possibly even eventual employee terminations."  Separately, Wal-Mart announced it increased manager salaries to at least $48,500 in September to be in compliance with the new $47,476 overtime threshold ahead of time.  An economic adviser to Donald Trump also said this week the overtime rule will limit job growth, but declined to say whether Trump would immediately overturn it if elected president.