Normally, employment law and activity by the Department of Labor is not something your NAFCU Regulatory Compliance Team spends much time writing about. Credit union and consumer financial regulation is more our jam. Because the 2016 amendments to the Fiduciary Duty Rule and the Overtime Rule had significance for credit unions, these specific issues did fall on our radar. And because both rule amendments were embattled and zombified after being issued, they never really fell off our radar.
Like phoenix from the ashes, the Department of Labor’s Overtime Rule is back. It is not yet clear whether this version will fare better in court than its predecessor.
In 2016, the Department of Labor under the Obama administration issued a final Overtime Rule, with an effective date of December 1st of that year. Multiple lawsuits seeking to overturn the rule were filed and consolidated into a case in the U.S. District Court for the Eastern District of Texas. A preliminary injunction against the rule was issued by the Texas court in November 2016, preventing it from going into effect. On December 1, 2016, the Department of Labor appealed that injunction to the Fifth Circuit Court of Appeals.
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