Proposed Overtime Rule Will Not Go Into Effect December 1, 2016

12.8.16

By: Jennings, Strouss & Salmon, P.L.C. Labor & Employment Attorneys

A Federal Judge in Texas has issued a nationwide injunction blocking the Department of Labor's new overtime rule that would have affected more than 90,000 Arizona workers. The rule was set to go into effect across the country on December 1, 2016.

The Department of Labor sought to update the overtime rules to "keep up with our modern economy" by raising the salary threshold (below which all workers must receive overtime pay) from $455 a week to $921 a week or $47,892 a year. The rule was challenged in two lawsuits - one by the U.S. Chamber of Commerce and the other by more than twenty states - in an attempt to delay the effective date or completely stop the new overtime rule altogether.

In a 20-page decision, U.S. District Court Judge Amos L. Mazzant ruled that the plaintiffs stood a significant chance of ultimately prevailing in the case and that they would suffer serious financial harm if the rule was put into effect as scheduled. The court held that the Obama administration overstepped its authority by, among other reasons, raising the salary threshold as high as it did.

The rule was expected to affect more than 4 million workers across the country.

Arizona employers with questions about the current overtime laws should speak with a qualified employment law attorney.

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Employers have many options for hiring labor and employment legal representation; however, unlike Jennings, Strouss & Salmon, few encompass the reputation, history, experience, and full-service functionality under one roof.

Minimum wage and overtime issues under the Fair Labor Standards Act create unique challenges for employers. We offer creative solutions and swift litigation support. From internal compliance audits to Department of Labor investigations, we guide clients through the maze of regulations to ensure they comply with the ever changing laws, and defend clients facing wage and hour litigation in both individual and collective claims.

Our labor and employment attorneys are also experienced at handling the wide-range of employment issues that challenge businesses, big and small. They regularly assist clients in hearings before numerous administrative agencies, such as the EEOC, OSHA, NLRB, OFCCP, U.S. Department of Labor, Arizona Civil Rights Division, and the Arizona Department of Economic Security. In addition, our labor and employment attorneys are skilled litigators, defending clients in all types of lawsuits brought before state and federal courts (both trial and appellate). They also assist our clients in resolving disputes through negotiation, mediation, arbitration, early neutral case assessment and other alternative dispute resolution techniques.

For assistance with any of your labor and employment needs, please contact one of our experienced labor and employment attorneys:

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