Source: Chris Scott, MEATINGPLACE, 9/21/16


A coalition of 21 U.S. states and several business groups led by the U.S. Chamber of Commerce both have filed lawsuits seeking to block or overturn a Department of Labor initiative that would boost the threshold for overtime exemptions for company managers as of Dec. 1.

Attorneys general in Texas and Nevada are suing the federal government in a U.S. District Court in Texas claiming that the overtime regulations are illegal because they automatically raise the wage levels every three years without authorization from Congress as required by law. Employers would be required to pay overtime to salaried workers who make less than $47,500 per year, an amount essentially double the previous threshold of $23,660. The current level was last updated 12 years ago.

The 21 states and business groups that filed also their own lawsuit alongside the U.S. Chamber of Commerce contend that implementing the new rule would force employers to demote salaried management workers to hourly jobs and to also create more part-time jobs at the expense of full-time workers. Businesses across a broad spectrum would be affected by the rule.
Labor Secretary Thomas Perez issued a statement defending the regulation, calling the lawsuits “obstructionist tactics” designed to block Obama administration efforts to make sure that workers – even managers – are fairly paid when they work extra hours.

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