A federal district court in Texas, where a coalition of 21 states filed legal action against the Dec. 1 Obama administration overtime rule, will hold a hearing this Wednesday, Nov. 16, on the issue. If the requested injunction against the rule is denied, the court will hold a dismissal motion hearing on Nov. 28, just two days before the new rule takes effect.
If an injunction is issued, it could put the whole rule on hold or just parts of it. Most legally contentious seems to be the automatic accelerator clause to adjust the overtime wage threshold according to the Consumer Price Index (CPI).
The overtime rule by the Department of Labor (DOL) will adjust the salary threshold for exemption from being paid overtime to $913 a week, up from the currently $455 a week. The annual equivalents are $47,476 verses $23,660.