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Judge refuses to halt overtime case

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Overtime rule

The federal judge who issued a preliminary injunction in November halting a new federal overtime rule has refused to stay proceedings in the case pending his ruling’s appeal to the 5th U.S. Circuit Court of Appeals.

Meanwhile, separately, the New York State Department of Labor has raised the overtime threshold for employers in the state.

U.S. District Judge Amos L. Mazzant III in Sherman, Texas, issued his preliminary injunction halting the overtime rule’s Dec. 1 implementation on Nov. 22. The U.S. Department of Labor then filed an appeal with the 5th Circuit in New Orleans asking for an expedited briefing schedule in the case.

The appeals court issued a schedule calling for briefs in the case to be submitted by Jan. 31, which means oral arguments would not be heard before President-elect Donald Trump’s inauguration. The Trump administration is not expected to pursue the case.

Judge Mazzant has so far not responded to a motion by the AFL-CIO to take over defense of the federal overtime rule should the U.S. Department of Labor withdraw from the case.

But on Tuesday, Judge Mazzant did refuse a Department of Labor motion to stay the case pending the appeal. “A district court has broad discretion to stay proceedings in the interest of justice and to control its docket,” said Judge Mazzant in his order, which followed a Dec. 30 telephone conference.

“Defendants’ motion does not present a substantial case on the merits,” said the ruling. While it is true that claims in the case “will likely be controlled in large part” by the 5th Circuit’s decision, “this argument alone does not demonstrate that defendants are likely to succeed in establishing that the court improperly issued the injunction,” said the ruling, in denying the motion to stay the case pending the appeal.

The overtime rule would have raised the threshold for overtime-exempt employees to $913 a week, or $47,476 annually for a full-time employee, compared with the current $455 a week, or $23,660 annually.

Meanwhile, the New York Department of Labor announced on Dec. 28 that beginning on Dec. 31 it was raising the threshold for overtime from $675 per week to $727.50-$825 per week depending on employer size and location.

 

 

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