Two Lawsuits Challenge New DOL Overtime Rules

The U.S. Department of Labor’s (DOL) new salary test for exempt employees is set to take effect December 1, raising the salary level to qualify for certain white collar overtime exemptions from $455 per week to $913 per week. However, two lawsuits filed on September 20 might delay or even stop the rules from taking effect.

Ohio joined Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Oklahoma, South Carolina, Texas, Utah, and Wisconsin in a lawsuit against the U.S. Department of Labor, its secretary, and other federal officials seeking to halt the new overtime rules.

Separately, but in the same court, a coalition of more than 50 business groups, including the U.S. Chamber of Commerce, the National Association of Manufacturers, the National Retail Federation, National Automobile Dealers Association, and the National Federation of Independent Business, also filed a similar lawsuit. Now it is up to a federal judge in Sherman, Texas to decide whether and when the new salary threshold will take effect.

In September, NARC hosted a session at the 2016 Executive Directors Conference in South Bend, Indiana regarding the new labor overtime rules. Click HERE for the presentation.

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