States Sue The U.S. Department of Labor To Stop New Overtime Rules

Twenty-one states have joined together in suing the U.S. Department of Labor (DOL) in the hopes of halting the imminent implementation of its new overtime rule, which they claim is unconstitutional and fiscally unsustainable. Starting December 1, the DOL’s new overtime rule mandates time-and-a-half overtime be paid by public and private-sector employers to hourly employees earning less than $47,476 annually. This is a significant jump from the previous salary threshold of $23,660 per year set by Congress in the Fair Labor Standards Act. The DOL’s new overtime rule also includes employees earning less than the new threshold that perform executive, administrative, or professional duties (commonly referred to as “white-collar” employees) who were previously exempt. The aggrieved states argue that the increased threshold is unconstitutional because the original threshold and exemptions were set by Congress and, once the DOL did away with the “white-collar” exemption, the DOL’s action illegally overruled congressional

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