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DEPARTMENT OF LABOR'S OVERTIME RULE HALTED

On November 22, 2016, Judge Mazzant of the United States District Court for the Eastern District of Texas granted an emergency motion for preliminary injunction which temporarily halts the implement of the Department of Labor's ("DOL's") new federal overtime rule raising salary thresholds to be exempt from overtime. Twenty-one states and fifty private parties had filed suits which were consolidated into the case of State of Nevada, et. al. v. United States Department of Labor, et. al.. The Court's grant of a preliminary injunction preserves the status quo while the court determines the DOL's authority to make its final rule as well as the final rule's validity. While the grant of the preliminary injunction is not permanent, it is certainly a bad omen for DOL's implementation of the rule. It is thought that Judge Mazzant would not have granted a preliminary injunction unless, among other things, he feels that the States have shown a substantial likelihood of succeeding on their underlying claims.

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