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DOL Overtime Rules Enjoined

Client Alert | 1 min read | 11.23.16

A federal district judge in Texas yesterday issued a nationwide preliminary injunction barring the U.S. Department of Labor from implementing new regulations increasing the minimum salary necessary for employees to qualify for many of the “white collar” overtime exemptions permitted under the Fair Labor Standards Act (FLSA). The rule was scheduled to be effective next Thursday, December 1. The DOL issued a statement yesterday that it disagreed with the decision and was considering all options. An emergency appeal of the court’s order is possible.

The decision will cause most employers to reassess their plans to comply with the new rule. Many companies have initiated compliance programs that call for increasing salaries of affected employees. Other plans are intended to convert employees to non-exempt status, making them eligible for overtime pay. Complex financial, operational and human resources issues are presented by the court’s order.

The court’s decision adopted the principal arguments advanced by plaintiffs in two consolidated cases brought in September challenging the DOL rule. The court concluded that DOL lacked authority under the FLSA to issue the new rule. According to the court, the new rule effectively adopted a “salary-only” test for FLSA exemption status, a result that is contrary to the FLSA’s requirement that DOL “define and delimit” the white collar exemptions with reference to the job duties actually performed by affected employees.

We are closely following developments in the litigation. We’re also working with clients on how to respond to the uncertainty created by yesterday’s ruling. Watch this space for additional updates.

Insights

Client Alert | 15 min read | 08.20.25

The New EU “Pharma Package”: Interplay with the Critical Medicines Act and other shortage initiatives

In this eighth alert in our weekly series on the EU Pharma Package, we continue our overview of initiatives with respect to security of supply and shortage prevention and mitigation. Our last alert looked at how the Pharma Package seeks to address these issues. However, the Pharma Package does not exist in isolation, and in this alert we will discuss the interplay between its measures and those contained in other important EU initiatives such as the proposed Critical Medicines Act (CMA), and the Medicinal Countermeasures Strategy and the EU Stockpiling Strategy....