21 States Challenge New White Collar Overtime Rule
Twenty-one states are challenging new overtime rules that increase the minimum salary requirements for exempt “white collar” employees. The rules are set to increase the minimum salary that an employee who is exempt from receiving overtime must be paid from $455 per week to $913 per week.
The US Department of Labor has been developing the regulations to correct abuses that allow poverty level salaries to be paid to supervisory employees. The regulations apply to those who are currently classified as executive, administrative, and professional white collar employees under the Fair Labor Standards Act (FLSA), and go into effect December 1, 2016.
The 21 states are Kentucky, Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Louisiana, Maine, Michigan, Mississippi, Nebraska, New Mexico, Nevada, Ohio, Oklahoma, South Carolina, Texas, Utah and Wisconsin. They claim as applied to state and local governments the regulations violate the 10th Amendment and constitute an unfunded federal mandate.
UPDATE: 11/22/16 – US District Court in Nevada issued a Preliminary Injunction against enforcement of the new White Collar Exemption regulations. Here is the ruling: nevada-v-dol-injunction-2016-11-22
I can see this one going down to defeat with our new administration. Was it you who pointed out the bogus titles — like “Condiment Manager” — some fast-food places use to put folks on a ludicrous salary to avoid paying living wages?
I just read an AP article* that says the U.S. District Court in the Eastern District of Texas has issued a nation-wide stay of Obama’s rule, pending “full review” by the courts. In light of Texas’ well-known anti-worker status, and the inclinations of the incoming administration, Obama’s rule will be gone by the end of January, quite possibly along with ALL overtime rules (and all the other pro-employee rules like OSHA, minimum wage, wage-hour regs, etc.). Welcome back to the Middle Ages, fellow serfs. We had freedom, and we lost it.
All you “Condiment Managers” and “French Fry supervisors”, gear up for 150-hour works weeks at $100 a week.
* http://www.pressherald.com/2016/11/22/federal-court-blocks-overtime-expansion-pay-for-4-million-people/
Curt, very interesting article. It is also possible that President-elect Trump could take executive action to block the rule, but it is not clear at this time what approach he would take to change or undo the rule. If the court strikes down the rule, further congressional or executive action may be unnecessary. Check out our opinion of the future of the overtime rule here: http://www.smallbizinsure.com/overtime-rule-blocked-federal-court/ #smallbizinsure #OTRule