After a Texas federal judge struck down the Department of Labor’s proposed overtime rule, as discussed here, the DOL dropped its appeal of the preliminary injunction the same judge granted in November 2016. As we previously noted, the Fifth Circuit appeal of the injunction, which blocked the Obama-era overtime rule from going into effect, became moot following the district court’s judgment on August 31, 2017.
Notably, however, the Department of Justice (on behalf of the DOL) can still appeal the court’s final judgment entered last week. It is unclear whether the DOL will appeal the ruling to challenge whether the agency has the authority to set any salary test for the exemption analysis. Or whether the DOL will instead propose its own version of a new overtime rule (or keep the current version intact). Employers should therefore keep an eye on any developments. Of course, we will continue to monitor and provide updates of any changes to overtime requirements.