A coalition of twenty-one states and several businesses and industry groups, including the U.S. Chamber of Commerce, are suing to block the new overtime-pay requirements set to take effect in December. They argue that the new policy is unconstitutional, unduly burdens the states, and violates the Tenth Amendment, which reserves powers to the states. The lawsuit was filed in a Texas District Court and is available here.
The rule is designed to boost lower and middle-class wages by raising the salary threshold for overtime pay, and is considered a significant policy milestone for the Obama Administration. By the Department of Labor’s estimates, over four-million people will be impacted by the new rule, including 60,000 workers in Alabama. The rule applies to all employees, including managers, executives, and other professionals, unless they fall under an exempt occupational category.