Finance News & Insights

Business groups ask for expedited ruling in OT rules lawsuit

There’s a chance a federal judge may put a stop to the Obama administration’s new OT rules after all.  

As you remember, the U.S. Chamber of Commerce joined with dozens of other business groups in a lawsuit seeking to block the Dec. 1 implementation of the new OT rules, which would raise the overtime salary threshold from $23, 600 to $47,500 per year. A similar suit was filed in the same Texas federal district court by a consortium of states.

At the time, many observers opined that it was unlikely the court would issue a ruling before the Dec. 1 deadline. But then the business group filed a motion for expedited summary judgment last week.

In a post on the Wage and Hour Insights blog, Bill Pokorny explained that the business groups are now asking the court to rule on the merits of their case on the same timetable that’s been set for its hearing of the motion for preliminary injunction in the parallel lawsuit by the states’ coalition. The business groups also asked to consolidate their case with the states’.

Per Pokorny:

The Court’s docket indicates that the DOL’s response to the motion for summary judgment is due on October 31, 2016. The DOL’s response to the states’ parallel motion for a preliminary injunction is likewise due on October 31, with the states’ reply due on November 10 and any sur-reply by the DOL due on November 15. The motion is set for hearing on November 16, 2016.

We’ll keep you posted.

Legislation pending

On the legislative side, Congress is still mulling new laws to extend the effective date to early next summer.  

The House of Representatives passed the Regulatory Relief for Small Businesses, Schools and Nonprofits Act (H.R. 6094) on Sept. 27. The law would move the effective date of the new OT rules from Dec. 1 to June 1, 2017.

A similar measure was introduced in the Senate by Sen. James Lankford (R-OK).

Lankford and Rep. Tim Walberg (R-MI), lead sponsor of the House bill, are hoping the legislation will encourage the administration to delay the rule on its own, according to President Obama has promised to veto the legislation.

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