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Federal Court Grants “Expedited” Appeal of Overtime Rule Case

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.

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