(Reuters) – U.S. business groups filed a lawsuit to block a Biden rule extending mandatory overtime pay. They argue it exceeds reasonable bounds.
Late Wednesday, the groups filed a complaint in Sherman, Texas federal court. They argue the Department of Labor lacks the authority, foreseeing job cuts and reduced work hours.
The Sherman court has two judges, one of whom in 2017 struck down a similar rule adopted by the Obama administration.
The rule would require employers to pay overtime premiums to workers who earn a salary of less than $1,128 per week, or about $58,600 per year, when they work more than 40 hours in a week.
The current threshold of about $35,500 per year was set by the Trump administration in a 2020 rule that advocacy groups and many Democrats have said does not cover enough workers.
The business groups in the lawsuit said the costs of complying with the new rule “will force many smaller employers and non-profits operating on fixed budgets to cut critical programming, staffing, and services to the public.”
The Labor Department did not immediately respond to a request for comment. The lawsuit involves groups like the National Federation of Independent Business, the International Franchise Association, and the National Retail Federation.
Biden’s overtime pay rule aims to expand eligibility for overtime pay among salaried workers. Proponents assert that it promotes fair compensation and work-life balance. However, transitioning into the opposition’s perspective, critics express concerns about increased costs and administrative burdens.
The challenge from US business groups raises questions about the future of Biden’s overtime pay rule. Regarding Biden overtime pay, stakeholders await regulatory decisions and legal proceedings. As discussions continue, the fate of overtime pay regulations remains uncertain.
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