Overtime Rule: Temporary Victory and a New Development

Date: December 01, 2016

Dear NFIB Member:

As you know, NFIB is part of a coalition of business groups fighting the Department of Labor (DOL) overtime rule in federal court. The rule was supposed to take effect today, December 1. Fortunately, Judge Amos Mazzant last week issued a temporary nationwide injunction, blocking the DOL from enforcing the rule until he could fully adjudicate the case. This could take weeks, or even months.

The injunction was an important temporary victory, giving small business owners more time. The situation continues to evolve. For example, as we expected, the Department of Labor today said that it would appeal with the Fifth Circuit Court to reverse Judge Mazzant’s injunction.

We are monitoring the case, and we will keep you informed. I want to emphasize that as of this writing, the injunction remains in place and the rule is not in effect.

Please know that NFIB will continue fighting to defeat the overtime rule because it would create a massive burden on small businesses. Thanks to your help, we have flooded Congress with thousands of emails opposing the rule.

The overtime rule would increase the salary ceiling below which certain workers are eligible for overtime from $23,660 to $47,476. By doubling the threshold, the rule would increase costs for many employers. According to NFIB research, 44 percent of small businesses have at least one employee who would be eligible under the new standard.

The legal wrangling, including today’s development, leaves us in a state of uncertainty. The court case will play out over the coming days and weeks. NFIB remains committed to this fight. Our legal victory last week was extremely encouraging and it remains in force.

Please refer to the NFIB Overtime Page that we have created for periodic updates.

Thank you for your support.


Juanita Duggan, NFIB President and CEO

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