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Department of Labor Challenges Overtime Expansion Delay

The information in this blog post refers to the proposed and final rules published by the U.S. Department of Labor in 2015-2016. To see the most recent information, click here.

On Dec. 1, the U.S. Department of Labor appealed a recent court decision that stopped the agency’s overtime expansion rule from going into effect. However, the agency’s initial steps in the appeal process do not change the status of the rule at this time.

While orders granting preliminary injunctions typically are appealable, it is unlikely that the 5th U.S. Circuit Court of Appeals will issue a resolution before President-elect Donald Trump is inaugurated on Jan. 20, 2017. However, the Department of Labor may ask the court to expedite the appeal process, according to the Society for Human Resource Management.

Because the fate of the rule remains so uncertain and every business is different, consulting legal counsel is any employer’s best course of action when it comes to making the right decisions for their business and their people. Industry experts also advise that employers continue to have a plan in place should the rule go into effect.

We will continue to provide more information as it becomes available. In order to stay up-to-date, subscribe to the Paycom Blog.