Department of Labor Vows to Challenge Overtime Pay Injunction

Department of Labor Vows to Challenge Overtime Pay Injunction

SAN ANTONIO — The U.S. Department of Labor filed a notice of appeal to challenge a Texas federal District Court judge’s injunction against sweeping new overtime pay laws which were set to take effect in early December. While the Labor Department’s action is encouraging, the future remains uncertain for millions of workers who would see significant pay raises should the proposed wage laws go into effect.

In May 2016, the Obama administration announced its intention to raise the overtime pay threshold significantly to keep up with inflation and the nation’s changing economic situation. Currently, workers cannot be placed on salary if their wages are less than $23,660 per year and the proposed changes would increase that number to $47,476 annually.

The doubling of the overtime pay threshold would have significant impacts on the wages of an estimated 4.6 million workers across the country, approximately 2.2 million of which would be in the retail and restaurant industries where companies rely on salaried workers to put in significant hours to meet payroll expectations. Experts studying the issue believe 35% of salaried workers would see a pay increase if their wages were simply raised to comply with the changes.

Appeal Could Take Months

Any appeal by the Labor Department would take months to sort through. According to sources, the average appeal in the Fifth Circuit Court of Appeals where the claim would be heard takes five months to come to fruition. However, attorneys for the Department of Labor do have the option of asking for an expedited hearing if good cause can be shown.

Even if the Fifth Circuit agreed to hear the case, the incoming Trump administration may choose to drop the appeal, a likelihood given the President-Elect’s strong “pro-business” stance. 22 state attorney generals and 50 major corporations brought the initial challenge to the law, making any appeal a tough road ahead but one that must be traveled in order to fairly compensate millions of hardworking Americans.

Overtime Pay Lawsuit Attorneys

Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.

Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.

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