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STATES AND BUSINESS GROUPS SUE OVER PENDING OVERTIME RULES

9/22/2016

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by James DeChene

This week, 21 states and over 50 business groups, including the U.S. Chamber of Commerce, the National Association of Manufacturers and the National Retail Federation, filed multiple lawsuits against the Department of Labor. All were seeking to overturn regulations that would change how millions of Americans are compensated for their labor by making them eligible to receive overtime pay.

Specifically, the salary threshold for exempt executive, administrative, and professional employees will increase to $47,476 per year (or $913/week), meaning that salaried employees earning less than this amount, regardless of job duties, must be compensated for overtime work.

Both lawsuits said the Department abused its authority by increasing the salary threshold so drastically, and failed to account for regional variations in the cost of living. In addition, the lawsuits claim the Department of Labor violated federal law by indexing the salary threshold to the 40th percentile of income, with automatic increases every three years.
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It is currently unclear as to whether the lawsuits will force the Department of Labor to delay implementation of these pending regulations. However, the Eastern Texas District where the lawsuit was filed is known as a “rocket docket” court where cases move along quickly. The State Chamber of Commerce will keep you informed with updates as they happen.
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    James DeChene is the Chamber's Senior Vice President of Government Affairs.

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PO Box 671 | Wilmington DE 19899
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  • Visit
    • New Castle County
    • Kent County
    • Sussex County
    • Relocate to Delaware
    • First State Kids
  • Advocacy
    • Take Action
    • District Maps
    • Legislative Roster
    • Legislative Priorities
    • Political Action Committee
    • Legislative Priority (Journal)
  • About Us
    • Governance
    • Our Team
    • Affiliates >
      • Delaware Manufacturing Association
      • Delaware Public Policy Institute
      • The Partnership, Inc. >
        • Superstars in Education >
          • JHTAward
          • SSE Winners Archive
        • Delaware Principal for a Day
    • Committees >
      • Delaware Young Professionals Network
      • Small Business Alliance
    • News & Media >
      • Chamber News
      • Member News
      • Delaware Business Magazine
      • Advertise with the Chamber
    • Certificates of Origin
    • JobBank
    • Internships
    • Contact
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    • Annual Events >
      • Annual Dinner >
        • 182nd Annual Dinner
      • Spring Legislative Brunch & Manufacturing Conference
      • Superstars in Education
      • End-of-Session Legislative Brunch
      • Chamber Chase
      • Delaware Networking Station
      • Developing Delaware
      • Superstars in Business
      • Taste of Delaware
    • Member Calendar
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