Federal District Court Grants Preliminary Injunction Blocking U.S. DOL New Overtime Regulation Nationwide
The Lubbock Chamber of Commerce releases statement from Chairwoman Beth Bridges on the preliminary injunction blocking the U.S. Department of Labor’s (DOL) new overtime regulation nationwide.
Beth Bridges, Lubbock Chamber of Commerce Chairwoman:
In a significant victory for job creators and employee flexibility and opportunity, U.S. District Judge Amos Mazzant issued a preliminary injunction on November 22 to block the U.S. Department of Labor (DOL) from enforcing costly and overreaching changes to the FLSA Overtime Rule. The new regulations are being challenged in federal court in a case filed by 21 states and consolidated with a lawsuit filed by a coalition including the Lubbock Chamber of Commerce and led by the U.S. Chamber of Commerce along with the Texas Association of Business, several national business organizations and almost 40 other local chambers of commerce in Texas. Changes to the rule were due to take effect December 1, 2016.
Like the U.S. Chamber we are very pleased that the court agreed with our arguments that the President Obama administration’s new overtime rule was unlawful and stopped the rule changes from taking effect on December 1. If the overtime rule changes had taken effect, it would have resulted in significant new costs – more than $1 billion according to the Congressional Budget Office – and it would have caused many disruptions in how work gets done. Furthermore, the rule would have reduced workplace flexibility, remote electronic access to work, and opportunities for career advancement. This is a great result.
For many of our small businesses, and other employers including state and local governments, this would have meant a disastrous financial hit, or reducing their ability to serve their customers.