On October 12, Nevada Attorney General Adam Paul Laxalt filed a Motion for Preliminary Injunction and Request for Expedited Consideration on behalf of the coalition of states. The motion was filed with the goal of urging the federal court to stop the Department of Labor’s (DOL) Overtime Rule from going into effect on December 1, 2016. Last month, a coalition of 21 states filed suit in United States District Court, Eastern District of Texas, challenging the rule. The government is expected respond to the motion by the end of the month.
In addition to the lawsuit filed by 21 states, more than 50 business groups, including the U.S. Chamber of Commerce, National Retail Federation, and National Federation of Independent Business (NFIB), have filed suit in federal court to block changes to the Overtime Rule. Both lawsuits state DOL abused its authority by increasing the salary threshold so drastically, and also failed to account for regional variations in the cost of living. The agency also violated federal law by indexing the salary threshold to the 40th percentile of income, with automatic increases every three years, the lawsuits claim.
NLBMDA members are asked to contact their Senators in support of the Overtime Reform and Review Act (S. 3464).
The legislation would phase-in the DOL’s new salary threshold in four stages over five years, starting with a substantial salary threshold increase to approximately $36,000 on December 1, 2016, followed by a “pause year” in 2017 to allow employers to review and adjust for the consequences of this new rule. Further increases to the salary level would occur annually thereafter, until reaching the final rule’s new threshold of $47,476 on December 1, 2020. Equally important is that the bill prohibits the final rule’s automatic increases to the salary threshold, yet allows the DOL to propose changes to overtime regulations in the future through the customary notice and comment process.