New Developments in Ongoing Litigation Enjoining Obama Era White Collar Overtime RulesU.S. Department of Labor Asks Fifth Circuit to Hold Appeal in Abeyance Pending New Rulemaking
District Court Considers Contempt Finding for Lawsuit Seeking to Enforce Enjoined Prior Regulations November 9, 2017
In July 2017, the DOL issued a request for public comments on 11 questions about potential changes to the overtime white collar exemptions, which we summarized in this blog post. More than 140,000 public comments were received.
Last week, the DOL appealed Judge Mazzant’s permanent injunction (on October 30), and then asked the Fifth Circuit to “hold this appeal in abeyance pending the outcome of new rulemaking” (on November 3). The Fifth Circuit granted the unopposed motion on November 6.
During this ongoing litigation, as discussed in our June 12, 2017 blog post, Carmen Alvarez filed suit against her employer, Chipotle Mexican Grill Inc., in the District of New Jersey seeking to enforce the 2016 overtime exemption regulations. She argued that the preliminary injunction only applied to the DOL, not private plaintiffs. In August, Chipotle sought sanctions before Judge Mazzant, arguing that Alvarez and her attorneys “intentionally disregarded” his order. In a November 6 hearing on Chipotle’s motion for sanctions, Judge Mazzant stated that Alvarez’s attorneys “did probably violate” his order, and rejected their argument that it did not apply to private plaintiffs. Judge Mazzant will rule on the sanctions motion following post-hearing briefing.
DOL Wages and Overtime