05/24/2024

Business Groups Challenge President Biden's Overtime Pay Rule

The lawsuit was filed in Texas

A coalition of U.S. business groups has filed a lawsuit seeking to block a Biden administration rule that would extend mandatory overtime pay to 4 million workers, saying it goes too far.

The groups filed a complaint in Sherman, Texas federal court late on Wednesday claiming the U.S. Department of Labor (DOL) lacked the power to adopt the rule and that it would force businesses to cut jobs and limit workers' hours rather than pay them higher wages.

The rule would require employers to pay overtime rates 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.

Please select this link to read the complete article from Reuters.