Two lawsuits have been filed against the U.S. Department of Labor’s overtime rule, one by attorneys general in 21 states and the other by business groups led by the U.S. Chamber of Commerce.
According to a release from the National Recreation Vehicle Dealers Association (RVDA), the overtime rule will increase the salary threshold that generally determines who qualifies for overtime pay, raising it to $47,476 a year from $23,660. It also will ensure the threshold is updated every three years by indexing it to salary growth in the lowest income region of the country.
The rule will have a broad effect on employers, workers, and nonprofits. The lawsuits against the rule say implementation will drive up employer costs, lead to cuts in workers’ hours, slow hiring of full-time staff, and turn salaried workers into hourly employees. The lawsuit filed by the states contends that the mechanism in the rule automatically increases the overtime threshold was finalized without going through a rule-making process required by law.
A large cross-section of business and nonprofit groups, including RVDA, pushed for changes to the rule and urged that certain exemptions for commissioned workers be retained. RVDA will be analyzing the impact of these lawsuits and providing more information to members as details become available.