Catherwood LibraryILR School

Twenty-one states are currently suing the United States Government over the Labor Department’s new overtime rule that is being rolled out this December. The new rule would make employees who make up to $47,000 eligible for overtime pay. The lawsuit argues that by almost doubling the floor that employers are required to pay overtime, the government is forcing employers to either 1) increase salary costs significantly, or 2) cut employee’s hours and organize them as hourly workers instead of salaried. For example, Iowa has estimated that the overtime law will amount to over $19 million in additional spending. Many of the states involved in the lawsuit, including Texas and Oklahoma, have participated in other legal disputes aimed at blocking the Obama administration’s initiatives, which have included the Clean Water Rule and giving illegal immigrants semi-permanent residency status.