State & Local Government Policy, Business and Technology

States, business groups sue U.S. government on overtime pay rule

Reuters: Officials from 21 U.S. states on Tuesday filed a lawsuit claiming an Obama administration rule to extend mandatory overtime pay to more than 4 million workers will place a heavy burden on state budgets.

Hours after the states announced their lawsuit, the U.S. Chamber of Commerce and other business groups filed a separate challenge to the rule in the same federal court in Sherman, Texas.

The rule, set to take effect Dec. 1, will require employers to pay overtime to salaried workers earning less than $47,500 a year, double the current threshold of $23,660. Business groups and Republican officials say the rule will force employers to demote salaried workers to hourly positions and create more part-time jobs.

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