As we expected, last evening, the Department of Labor filed a notice of appeal in the Fifth U.S. Circuit Court of Appeals in New Orleans. The Department of Labor’s appeal indicates plans to challenge the injunction that put the changes to the federal overtime rule on hold by a Texas federal judge. The appeal does not immediately lift the injunction and employers are not required to comply with the new overtime rules until the court takes action. The ruling on this DOL’s appeal is not likely to take place until after President-Elect Trump takes office, possibly even as late as April 2017.
The DOL still has a few avenues it can explore during the appeal process in order to lift the injunction and Innovative will continue to update our clients accordingly.
Innovative’s Compliance Counsel, Yesenia Perez, says, “We recognize that the current political climate makes it difficult for our clients, whose desire for HR compliance is paramount to their human capital success. We will continue to provide updates as they become available.”
As always, Innovative is accessible for any questions or to discuss the best practice for your business and your employees.
