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National Restaurant Association - Overtime Rule

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Restaurant Law Center

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Overtime Rule

Case: State of Nevada et al. v. United States Department of Labor et al.

Status: Pending, Eastern District of Texas, U.S. Court of Appeals for the Fifth Circuit

Issue: We believe the U.S. Department of Labor overstepped its authority when it made changes to the federal overtime rule. We’re part of the legal management team working to challenge the regulation in court.

  • Two groups of plaintiffs –21 state attorneys general, as well as 50+ business groups – filed lawsuits to challenge the DOL’s final overtime rule, which was published in May 2016 with a planned effective date of Dec. 1, 2016.
  • On Nov. 22, 2016, at the request of the state plaintiffs, Judge Amos Mazzant of the Eastern District of Texas granted a preliminary injunction to put the overtime rule on temporary hold while the underlying legal challenges proceed.
  • The DOL immediately appealed the injunction, and the U.S. Court of Appeals for the Fifth Circuit has agreed to expedite its review. We joined the Texas Restaurant Association and 50+ other business groups in filing an amicus brief on Jan. 24, 2017, supporting the state attorneys general and the injunction.
     
  • Meanwhile, the legal challenges to the overtime rule are moving forward. The two cases have been consolidated for Judge Mazzant’s review. There’s no timeline yet for consideration. The Texas AFL-CIO has asked to intervene as a defendant, saying it has “grave concerns” about whether the Trump Administration will defend the federal overtime rule.

 

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