States sue to block new overtime exemption rules
Twenty-one states on September 20 filed suit in the U.S. District Court in Eastern Texas to block implementation of new U.S. Department of Labor regulations that would expand the pool of workers that must be afforded overtime pay. The rule currently is to take effect December 1.
Under DOL regulations, “white collar” employees are exempt from overtime pay only if they meet both a “duties” test and a “salary” test. The new rule raises the salary threshold for an exemption to $47,476 based on an index that will automatically update every three years.