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Nevada v. U.S. Dep’t of Labor   (5th Circuit)

Defending the overtime preliminary injunction from a collateral attack

The NAM filed an amicus brief on behalf of Chipotle Mexican Grill, supporting the nationwide injunction of the overtime rule. In 2017, the judge in Plano Chamber of Commerce v. Perez held that the Department of Labor (DOL) contradicted the express will of Congress and issued a nationwide injunction to prevent implementation of the new Overtime Rule. Later, in an unrelated case in a different jurisdiction, a plaintiff filed suit against her employer, Chipotle, for violating the new overtime rule. The judge who issued the nationwide injunction in Plano held the plaintiff in contempt for filing a suit that seeks to enforce an enjoined rule. The plaintiff is appealing that contempt order, arguing that she was not within the judge’s jurisdiction and, therefore, cannot be held in contempt. If the plaintiff can sue her employer under the enjoined rule, the nationwide injunction would be functionally invalid, and manufacturers would be subjected to billions of dollars in overtime liability under the new rule.

The NAM argues that the validity of the nationwide injunction should not be relitigated when determining whether it was proper for the Plano judge to hold a party in another jurisdiction in contempt of court. The NAM’s amicus brief argues that the only question before the court is whether the contempt order was valid, not whether the nationwide injunction was meritorious. For more information on Plano, click here .

Related Documents:
NAM amicus brief  (July 13, 2018)


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