Lawsuit Challenges Final Rule to Expand Overtime Pay
A new lawsuit has been filed challenging the U.S. Department of Labor’s (DOL) final overtime rule.
May 31, 2024
The lawsuit, brought by several small businesses groups representing business interests, claims that DOL overstepped its regulatory authority in promulgating the rule.
In April 2024, the DOL released the final rule that updates and revises regulations under the Fair Labor Standards Act that implement the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional employees.
The rule goes into effect on July 1, 2024, with the new salary and compensation levels going into effect on January 1, 2025. Future updates to the salary and compensation levels will occur every three years.
The DOL took steps to phase in the full impact of the new rules in response to employer concerns. Some concerns remain, however, over the size of the increased salary threshold and that the July 1 deadline does not provide businesses adequate time to prepare for the changes.
More information on the rule is available on DOL’s website, and NAMM will continue to follow and report on this issue as it develops.
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