As ISRI reported last month, the federal court temporarily halted implementation of the new federal overtime rules issued by the U.S. Department of Labor (DOL) which were to go into effect on December 1, 2016.
Last week, the U.S. Court of Appeals for the Fifth Circuit granted the
DOL’s request for an expedited hearing of its appeal, as DOL seeks to fast
track the appeal. Even with the expedited hearing, oral arguments before
the court are not expected to take place until February or March 2017, well
after President-elect Trump takes office. During the campaign, Trump said
he favored an exemption from the overtime rule for small business, but it
remains to be seen whether his administration will drop the appeal after he
takes office on January 20, or if he will pursue the appeal. Many believe
that even if Trump does follow through with the appeal, there is a strong
chance that the rule will be shot down because the judge signaled he was
inclined to believe the new rule exceeds the DOL’s authority. ISRI will
continue to monitor the situation and report on developments.