Eastern District Court of Texas Approves Preliminary Injunction, Suspending Implementation of Overtime Rule

In a major legal victory, U.S. District Court Judge Mazzant granted an emergency injunction on the Department of Labor's overtime regulation.  The preliminary injunction prohibits the new overtime rules from going into effect on December 1st.  It is expected that the Department of Labor will appeal this decision but while the appeal is being heard, the new regulations are enjoined and can not go into effect. 
 
As you are already aware, on September 20th AHLA joined forces with more than 50 other national and state associations, including the Texas Hotel and Lodging Association, in filing a lawsuit against the Department of Labor (DOL) and its overtime regulation.  The lawsuit, which was filed in the U.S. District Court for the Northern District of Texas, argued that the DOL exceeded its statutory authority in issuing the regulation and further violates the Administrative Procedures Act.  A link to the lawsuit can be found here.  Twenty-one state attorneys general filed a similar lawsuit in the same U.S District Court on September 20th as well.   Both cases sought injunctive relief barring the DOL from implementing the regulation until the court has finished its review of the case. 
 
AHLA has actively worked with the broader business community since this rule was first announced to advocate for a more reasonable approach, and today's news represents a significant victory for our industry and small businesses across the country.  Beyond substantial outreach to Congress to push for change, AHLA also submitted extensive comments for the record to the DOL arguing that the regulation did not consider regional economic disparities and that the proposed increase was too high and too fast and not immediately absorbable for many small businesses.   Thanks to each of you who participated in these efforts and voiced your concerns to your Member of Congress and other elected officials about the impact of the overtime regulation.
 
We will keep you updated in the days ahead as the next phase of court action moves forward and conversations continue in Congress and with the new Administration to address this issue.